Pakistan’s Cement Sector Shows Strong Recovery

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Pakistan’s cement industry has started fiscal year 2025–26 with a notable recovery, recording a 30% year-on-year increase in total dispatches for July, according to data released by the All Pakistan Cement Manufacturers Association (APCMA). Total sales rose to 3.997 million tonnes compared to 3.071 million tonnes during the same month last year.

The increase was driven by growth in both domestic and export segments. Local sales rose by 28.5%, while exports posted a 38.5% increase. Industry analysts suggest the domestic boost reflects a gradual return of construction activity, aided by improved market stability. On the export front, the gains are attributed to competitive pricing and rising demand from key markets such as Afghanistan and countries in Africa.

The APCMA report shows a healthy performance across both northern and southern regions of the country, with all major producers reporting improved output. This indicates a broad-based recovery rather than isolated regional success. The association also stated that the industry exceeded expectations in July, suggesting that if current conditions persist, a sustained period of growth may follow.

The sector’s turnaround comes after several years of challenges, including high energy costs and a slowdown in infrastructure development. The recent growth in dispatches is seen as a positive indicator for related industries such as steel, construction materials, and logistics, which are closely tied to cement demand.

The July performance also holds implications for broader economic trends. Construction activity often reflects investor confidence and serves as a leading indicator of economic health. The current uptick suggests developers may be more optimistic about the economic outlook, particularly if stable conditions continue.

Despite ongoing concerns such as energy pricing and international freight costs, the cement industry’s July figures reflect resilience and renewed momentum. The data could mark the beginning of a recovery phase for one of Pakistan’s key industrial sectors.

As fiscal year 2025–26 progresses, market observers will watch closely to see if the growth in cement demand continues and if similar results can be sustained in the coming months.