AHL Research Ltd has reported that Pakistan’s cement industry opened the new financial year (July 2026–June 2027) on a strong note, with total dispatches rising 6 per cent year-on-year to 4.48Mt in July. The increase was driven by robust domestic demand, while exports continued to lag.
Local cement sales surged 17 per cent YoY to 3.78Mt, offsetting a steep 30 per cent decline in exports to 0.71Mt. On a month-on-month basis, domestic dispatches rose 7 per cent, whereas exports fell 11 per cent. Industry-wide capacity utilisation stood at 64 per cent in July, with northern plants operating at 55 per cent and southern units at a high 95 per cent. Prices also firmed, averaging PKR 1,530 per 50kg bag, up 8 per cent YoY.
Price trends
Regionally, northern prices climbed 10 per cent to PKR 1,514 per bag, while southern prices rose 7 per cent to PKR 1,547. Company performance reflected mixed fortunes. DG Khan Cement posted a modest 1 per cent YoY rise to 0.50Mt, supported by stronger domestic sales.
Dispatches data
In the related development, Fauji Cement grew 2 per cent YoY to 0.49Mt, entirely on local demand as exports dropped to zero. Kohat Cement recorded a 17 per cent YoY increase to 0.23Mt, also fully domestic-driven. Lucky Cement rose 9 per cent YoY to 0.87Mt, with domestic sales up 21 per cent but exports down 13 per cent. Maple Leaf Cement advanced 12 per cent YoY to 0.35Mt, while Power Cement led the pack with a 39 per cent YoY jump to 0.31Mt, buoyed by a 111 per cent surge in exports.
Looking ahead, analysts expect industry momentum to strengthen in FY27, supported by recovering economic activity, budgetary incentives for the construction sector, and further interest rate cuts. Export demand recovery is also anticipated to provide additional support, with overall cement dispatches projected to grow by 7–8 per cent during the year.
By Abdul Rab Siddiqi, Pakistan
