Market data on the cement sector in Pakistan was released this week. It is looking promising with combined despatches up. Let’s dig a little deeper.
Overall despatches grew by 7% year-on-year to 50.1Mt in the 2026 financial year (FY2026) from 46.2Mt in the previous period, according to data from the All Pakistan Cement Manufacturers Association (APCMA). Note that in Pakistan the financial year runs from July to June. Local sales drove the trend with a rise of 9.5% to 41.5Mt. However, exports fell slightly to 9Mt. An APCMA spokesperson said that demand for cement both locally and in export markets was expected to remain strong in the coming months. They added that decreasing geopolitical tensions at that time could help to reduce the sector’s energy prices. Arif Habib’s view backed that of the APCMA. It added that “...budgetary relief for the construction sector and any further decline in interest rates are expected to support demand.”
Graph 1: Local and export cement despatches in Pakistan, 2018 - 2026 financial years. Source: All Pakistan Cement Manufacturers Association.
Graph 1 above shows the wider picture and the evolving dynamic between domestic and export despatches. Exports have typically grown as local sales decline. Combined despatches in FY2026 were 50.5Mt, the third highest figure since FY2018. Within the country the cement plants in the north of the country tend to supply the domestic market and the ones in the south split their output between local and export markets. Exports notably dipped significantly in the FY2022 due to high energy prices making them less competitive. They have since recovered but they did soften slightly in FY2026. Exports fell in the north due to the closure of the border with Afghanistan in late 2025 due to hostilities between the two countries, according to AKD Research. Exports rose in the south of Pakistan due to growing demand from Africa but it wasn’t enough to bring up the total.
It is within this environment that local media reminded its audience this week that the Special Investment Facilitation Council has been helping cement companies in the country build new capacity. Back in April 2026 the council approved projects with a US$700m investment and also helped to resolve regulatory delays. Companies that received approvals were Flying Cement, Lucky Cement, Bhutta Cement, Asian Precious Minerals, Orient Cement, Dandot Cement and Maple Cement. Lucky Cement announced this week that it had completed and commissioned a process optimisation and capacity enlargement project at its Karachi plant. The production capacity at the unit has now increased by 300,000t/yr to 5.35Mt/yr. In its note to the market it highlighted that the work was expected to reduce fuel consumption per tonne of cement produced. The company now has a total production capacity of 15.6Mt/yr and it says it is the largest producer in Pakistan. Lucky Cement’s ambitions are not restricted to Pakistan. It was also reported this week that the company had met with the chair of the Privatisation and Investment Board in Libya. It is considering building a 2.5Mt/yr cement plant in Khoms, Libya. If the project is realised it will join the group’s other overseas plants in Iraq and the Democratic Republic of Congo.
Financial results in FY2026 for the main cement producers are not due until August 2026. Nine-month data to March 2026 showed particular sales revenue gains for Power Cement and Lucky Cement. Both companies attributed this to rising sales volumes, particularly domestically. Many of the other large producers also reported this although the local-export sales mix affected overall revenue in some cases.
Overall the situation is looking good for cement in Pakistan at the moment. Local demand is up and the export market is buoyant with the exception of Afghanistan. Recent government policy looks set to further stimulate domestic sales in the near future. One major risk is the cost of energy related to the Iran war. At the time of writing, the April 2026 ceasefire between the US and Iran has been declared “over” by President Trump.
