Pakistan’s cement industry is poised for strong growth in FY25, supported by improving macroeconomic conditions and revived construction activity. At the recent Pakistan Day Conference 2025, hosted by Topline Securities, Maple Leaf Cement Factory Ltd (MLCF) shared an optimistic industry and company outlook.

Cement demand strengthens
MLCF management, including CFO Mr Mohsin Naqvi and Mr Sohail Sadiq, revealed that FY26 domestic dispatches are now expected to grow 6–9 per cent, up from an earlier forecast of two per cent, reflecting solid demand momentum in the early months of the fiscal year. This is attributed to easing inflation (down from 37 per cent to 5–7 per cent), falling interest rates, rising purchasing power, and the revival of delayed construction and public infrastructure projects.

Cement prices are expected to remain stable with room for modest increases. Historically, retention prices have grown ~5 per cent annually, reaching PKR 15,600/t in FY25.

Diversification into healthcare and Agritech
MLCF is diversifying beyond cement. Through its NovaCare Hospitals initiative, the company plans to launch three private hospitals, starting with Islamabad by end-2026. The project involves US$100m in capex, funded equally through debt and equity, with US$25m already invested.

In addition, MLCF has acquired a 34.4 per cent stake in Agritech Limited (AGL). The restructured AGL board includes representatives from MLCF, Fauji Fertilizer, and independent directors. Current domestic cement capacity utilisation stands at ~48 per cent, expected to improve to 52–55 per cent on stronger demand.

Power & fuel strategy
MLCF’s current power mix includes 26 per cent waste heat recovery, 60 per cent coal, eight per cent solar, and six per cent grid electricity, with an average power cost of PKR15.82/kWh. Fuel costs average PKR31,000/t, with the unique use of pet coke among local players. The company plans to ramp up biomass usage to 40 per cent, which could cut fuel costs by 20–25 per cent.

While no new cement capacity expansions or acquisitions in the southern region are planned, MLCF maintains a strategic 20 per cent stake in Pioneer Cement (PIOC), the country’s seventh-largest cement producer.

By Abdul Rab Siddiqi, Pakistan