Domestic Demand Drives 11% Growth in Cement Sales Amid Export Slump

ISLAMABAD – Pakistan’s cement industry witnessed a significant recovery in domestic demand during April 2026, with local dispatches surging by over 20 percent, effectively cushioning the impact of a double-digit decline in foreign shipments.

According to the latest data released by the All Pakistan Cement Manufacturers Association (APCMA), total cement dispatches for the month stood at 3.89 million tons, marking an 11.14 percent year-on-year increase from the 3.5 million tons recorded in April 2025.

Local Market Rebound

The primary engine of growth was the domestic market, which absorbed 3.217 million tons in April 2026 compared to 2.677 million tons during the same period last year. This robust 20.17 percent growth is attributed to a steady uptick in public sector development projects and a gradual revival of private construction activity as inflationary pressures begin to ease.

• Regional Performance: Northern cement mills dispatched 2.662 million tons locally, growing by 18.25 percent.
• Southern Surge: Southern mills recorded an even more impressive 30.35 percent jump in local sales, reaching 555,104 tons.
• Fiscal Year Outlook: Cumulative local dispatches for the first ten months of FY26 have now reached 34.785 million tons, a growth of 11.33 percent over the previous fiscal year.

Export Challenges Persist

In sharp contrast to the local boom, the export sector faced a difficult month. Total cement exports plummeted by 18.22 percent, falling to 673,058 tons in April 2026 from 823,032 tons a year earlier.

Industry analysts point to high production costs—driven by volatile energy prices—and a lack of competitive pricing in international markets as the main factors behind the southern mills’ 5.01 percent dip in exports. Notably, northern mills recorded zero export activity during the month, reflecting the logistical and economic hurdles facing land-based trade.

Industry Utilization

Despite the positive trajectory in local sales, the industry continues to operate with significant idle capacity. Capacity utilization remains between 51 percent and 54 percent, as the total installed capacity far exceeds current domestic and international demand.

The APCMA remains cautiously optimistic, noting that while the domestic recovery is a welcome sign for the national economy, sustainable long-term growth will require more competitive export policies and a continued focus on infrastructure development.

April 2026 Performance at a Glance