Pakistan’s cement industry recorded modest growth in January 2026, with total dispatches rising 12.54 per cent YoY to 4.54Mt, compared to 4.03Mt in January 2025, according to the All Pakistan Cement Manufacturers Association (APCMA).
Local cement dispatches increased 4.4 per cent to 3.601Mt from 3.45Mt, while exports surged 61.1 per cent to 937,097t from 581,691t a year earlier.
Northern-based cement mills dispatched 2.95Mt in January 2026, up 4.7 per cent from 2.82Mt in January 2025. Southern mills recorded stronger growth, with dispatches rising 30.8 per cent to 1.59Mt from 1.214Mt.
In domestic markets, northern mills delivered 2.95Mt, up 6.9 per cent from 2.76Mt. However, southern-based mills saw local dispatches fall 5.9 per cent to 651,089t from 691,727t. Northern-based mills recorded no exports in January 2026, while southern exports climbed 79.4 per cent to 937,097t from 522,336t.
For the first seven months of the current fiscal year (July 2025 to January 2026), cumulative dispatches reached 30.583Mt, a 10.6 per cent increase from 27.656Mt in the same period last year. Domestic dispatches rose 12.4 per cent to 25.015Mt from 22.264Mt, while exports increased 3.3 per cent to 5.568Mt from 5.392Mt.
Northern mills recorded total dispatches of 21.704Mt, up 11.7 per cent from 19.434Mt. Domestic deliveries rose 13.7 per cent to 20.90Mt, while exports declined 23.1 per cent to 808,506t from 1,051,768t.
Southern mills dispatched 8.879Mt during the same period, up eight per cent from 8.223Mt. Domestic dispatches rose 6.1 per cent to 4.12Mt, while exports increased 9.7 per cent to 4.759Mt.
Meanwhile, AKD Research’s Usama Rauf said the Prime Minister’s industrial relief package is expected to support the cement sector. Measures include a PKR4.04 per unit (US$0.01) cut in industrial energy tariffs and a 300-basis-point reduction in the Export Finance Scheme (EFS) rate to the policy rate minus six per cent. Grid-dependent companies such as FCCL, DGKC, and CHCC are expected to benefit most, with estimated earnings impacts of 3.8, 3.6, and 2.7 per cent, respectively. Southern-based firms, particularly DGKC, may also gain from the lower EFS rate, with a potential annual earnings per share impact of around 1.3 per cent.
by Abdul Rab Siddiqi, Pakistan
