Pakistan's cement production capacity has reached 84.58Mta for FY24-25, according to the Pakistan Economic Survey FY25, released by the Ministry of Finance (MoF) on 8 June. The survey assesses the performance of the cement industry and the broader industrial sector for the current fiscal year, which concludes on 30 June.

Over the years, the cement industry in Pakistan has experienced a significant increase in production capacity, rising from 45.62Mta in FY15-16 to 84.58Mta in FY24-25. This growth reflects considerable investment and the sector's potential for future expansion. However, capacity utilisation has notably decreased from a peak of 94.4 per cent in FY17-18 to just 53 per cent in the current fiscal year, primarily due to sluggish domestic demand.

The slowdown in construction activity has been largely attributed to high input costs, which have restrained private-sector construction. In light of diminished local demand, the cement industry has increasingly turned its attention to international markets. Notably, exports have shown a significant upward trend, indicating the industry's resilience and adaptability. This growth underscores Pakistan's competitive edge in regional and global markets, particularly as economic conditions in neighbouring countries stabilise and construction demand increases.

Northern region
Domestic consumption in the north totalled 22.791Mt during the 9MFY24-25, down from 24.236Mt in the same period last year, reflecting a six per cent decline. Meanwhile, exports from the north increased by 7.8 per cent, reaching 1.12Mt compared to 1.04Mt during the previous year.

Southern region
In the south, domestic consumption decreased by 9.6 per cent, reaching 4.67Mt during the July-March FY24-25 period, compared to 5.166Mt in the same period last year. However, exports from this region saw a substantial increase of 33.3 per cent, rising from 4.061Mt to 5.41Mt over the same period.

Cumulative overview
Overall, the cement industry experienced a decline of 1.5 per cent during the period under review, with total dispatches at 33.994Mt, down from 34.5Mt in the previous year, primarily due to subdued domestic demand. Domestic consumption decreased by 6.6 per cent, totalling 27.46Mt compared to 29.40Mt a year earlier. Despite these challenges, there is a positive aspect; export shipments surged by 28.1 per cent, increasing from 5.10Mt to 6.53Mt over the same period.

by Abdul Rab Sidiqqi, Pakistan