Pakistan’s cement sector recorded a robust performance in January 2026, with total dispatches rising 12.54 percent year-on-year, largely due to a sharp rebound in export shipments, the All Pakistan Cement Manufacturers Association (APCMA) reported on Wednesday.
According to the latest data, total cement dispatches stood at 4.538 million tonnes in January, compared with 4.032 million tonnes in the same month last year. Export volumes surged, while local sales showed more moderate growth.
Exports Drive Growth
The standout feature of January’s performance was the strength of cement exports, which climbed 61.1 percent to 937,097 tonnes from 581,691 tonnes in January 2025. This surge highlights the increasing importance of overseas markets for Pakistan’s cement producers amid uneven domestic construction demand.
In contrast to the export surge, local cement sales rose by 4.36 percent, reaching 3.601 million tonnes up from 3.45 million tonnes the previous year. The domestic growth, while positive, remained modest relative to export performance.
Regional Dispatch Trends
Disaggregated data show distinct regional patterns in dispatch performance:
- North-based mills dispatched 2.95 million tonnes, a 4.67 percent increase compared to last January, supported mainly by domestic sales.
- South-based mills recorded stronger overall growth, with total dispatches jumping 30.82 percent to 1.59 million tonnes, heavily driven by export shipments.
In domestic markets, the northern region posted better sales growth, while southern mills saw a slight decline in local demand. Notably, all export shipments recorded in January originated from the southern region.
Broader Cement Sector Performance
The positive January outcome adds to an upward trend for the current fiscal year (July 2025–January 2026). Over the first seven months of FY2026, total dispatches reached 30.583 million tonnes, up 10.58 percent from 27.656 million tonnes in the same period last year.
During this period, domestic dispatches climbed 12.36 percent, reflecting a gradual recovery in local construction activity, while cumulative export volumes also edged up slightly year-on-year.
Industry Outlook
Industry analysts note that cement demand patterns are increasingly reliant on exports, especially as local construction activity remains mixed. While growth in domestic sales provides a stabilising base, continued export momentum could be key to maintaining overall sector performance throughout 2026.
Policymakers and business stakeholders will be watching future data closely to assess whether export gains can be sustained and domestic demand can firm up further in the second half of the fiscal year.
