Special Correspondent

Pakistan’s cement industry has posted a strong recovery in the opening quarter of the current fiscal year, with total despatches — both domestic and exports — climbing to 12.161 million tons, a 16.25 percent increase over the 10.461 million tons recorded during the corresponding period of the previous fiscal year, according to the latest data released by the All Pakistan Cement Manufacturers Association (APCMA).

The data showed that domestic despatches reached 9.573 million tons in July-September 2025, up 15.08 percent from 8.319 million tons in the same three months of last year, underlining strong demand from the housing, infrastructure, and industrial segments. Export shipments grew at an even faster pace, surging 20.81 percent to 2.589 million tons compared with 2.143 million tons a year earlier, as manufacturers took advantage of competitive pricing and opportunities in markets such as Afghanistan, East Africa, and the Gulf region.

Industry performance has been solid month to month as well. After an impressive 31.24 percent month-over-month growth in July 2025 and a further 13.47 percent expansion in August 2025, the pace moderated but remained positive in September, when despatches rose 7.05 percent year-on-year. Total cement despatches in September stood at 4.250 million tons compared with 3.970 million tons in September 2024. Local sales during September alone reached 3.418 million tons, up 14.38 percent from 2.988 million tons in the same month last year, reflecting a sustained pickup in domestic demand following a period of stagnation. However, exports in September dropped to 831,966 tons, down 15.25 percent compared with 981,646 tons in September 2024, as shipping costs and market volatility impacted foreign sales during the month.

A regional breakdown shows the North-based mills, which account for the majority of national capacity, performing strongly. In September 2025, North-based producers despatched 3.162 million tons, an increase of 16.41 percent compared with 2.717 million tons last year. Domestic sales from the North climbed to 2.941 million tons, registering a solid 17.02 percent jump from 2.513 million tons in September 2024, as infrastructure and private construction activities remained steady in Punjab and Khyber Pakhtunkhwa. Exports from North-based mills also improved during September, rising 8.84 percent to 221,252 tons from 203,280 tons in the same period last year.

The performance of the South-based mills, which cater heavily to export markets and local consumption in Sindh and Balochistan, was more mixed. Total despatches from the South in September 2025 stood at 1.09 million tons, down 13.23 percent from 1.253 million tons last year. Domestic despatches in the South showed a marginal increase of 0.41 percent, inching up to 476,465 tons compared with 474,528 tons in September 2024, indicating a softer local demand in southern markets. Exports from the South dropped sharply by 21.54 percent to 610,714 tons compared with 778,366 tons in September 2024, primarily due to subdued buying interest from key foreign destinations and freight-related challenges.

Taking the full quarter into account, the North region maintained its dominance with robust growth. North-based mills sold 8.010 million tons domestically during July-September 2025, up 13.65 percent compared with 7.048 million tons in the corresponding period last year, and exported 661,866 tons, showing an impressive 30.49 percent increase from 507,201 tons a year earlier. This lifted the total despatches from the North to 8.672 million tons, a 14.78 percent jump compared with 7.555 million tons in the first quarter of FY2024.

South-based mills also delivered encouraging results overall for the quarter despite the September slowdown. Domestic sales from the South rose strongly to 1.562 million tons, up 22.99 percent from 1.270 million tons in the previous year’s first quarter, while exports advanced to 1.926 million tons, recording a 17.80 percent growth against 1.636 million tons last year. Total despatches from the South for the quarter reached 3.489 million tons, showing a 20.07 percent increase over 2.906 million tons in the same period of FY2024.

An APCMA spokesman said the sector has potential to deliver even stronger numbers if the government extends fiscal support to reduce costs and stimulate construction. “We can achieve better growth provided the government gives concessions on duties and taxes, which will ultimately benefit the end consumer,” he said. He added that a substantial volume of cement would be required for reconstruction and infrastructure rehabilitation following the devastating floods, and timely facilitation from the government could help both producers and consumers.

Credit: INP-WealthPk