The Pakistan Economic Survey 2025-26, which presents a detailed assessment of the national economy's performance during the outgoing fiscal year, was released on June 11. It also covered the performance of the cement industry nationwide.
The cement industry in Pakistan has witnessed a substantial increase in production capacity over the years, rising from 45.62Mt in FY16 to 84.58Mt in FY26. This expansion reflects significant investment and growth potential within the sector. Capacity utilisation increased notably to 60.2 per cent in FY26, from 55.1 per cent last year. The increase is primarily driven by improved domestic demand, signalling higher construction activity.
Exports have recorded a notable upward trend, reflecting the industry's resilience and adaptability. This growth underscores Pakistan's competitive edge in regional and global markets, especially as economic conditions in neighbouring countries stabilise and construction demand picks up.
Northern region
Domestic consumption in the north was recorded at 26.4 Mt during the first nine months of FY 2026, compared to 23.5 Mt dispatched last year, representing a growth of 12.0 percent. However, exports from the north declined by 28.8 per cent to 0.8Mt during the period, down from 1.1Mt in the same period last year.
Southern region
Domestic consumption in the south increased by 3.5 per cent to 5.2Mt during July-March FY 2026, while exports increased by 13.5 per cent to 6.1Mt, bringing the region's total despatches to 11.3Mt.
Cumulative
Cumulatively, the Cement industry recorded growth of 9.7 per cent during the period under review, with total dispatches standing at 38.5Mt, up from 34.503Mt last year. Domestic consumption increased by 10.5 per cent to 31.6Mt, while exports grew by 6.2 per cent to reach 6.9Mt.
Export
Cement exports increased by 17.7 per cent to US$271m during July - March FY26, supported by both higher volumes and improved prices, reflecting stronger demand in regional and international markets.
By Abdul Rab Siddiqi, Pakistan
