Pakistan’s cement industry recorded a recovery in the fiscal year 2024-25 (FY25), with total cement dispatches increasing by 2 percent year-over-year to 46.22 million tons. Exports saw a sharp rebound, rising by 29.5 percent to 9.20 million tons, offsetting the domestic shortfall and pushing the overall numbers into positive territory.

The growth was primarily driven by a significant surge in exports, even as domestic consumption continued to slide.

According to data released by the All Pakistan Cement Manufacturers Association (APCMA), domestic cement sales during the year fell by 3.1 percent to 37.02 million tons, reflecting the impact of a sluggish construction sector and reduced demand amid economic challenges.

Region-wise performance showed diverging trends. Cement mills in the North reported a 1.8 percent decline in total dispatches, which dropped to 32.41 million tons. Domestic sales in the region slipped by 2.6 percent, while exports managed a 15.6 percent increase over the previous year.

In contrast, South-based mills saw a strong performance, with total dispatches climbing 12.3 percent to 13.81 million tons. The growth was fueled by a 33 percent surge in exports, although local demand declined by 5.2 percent year-on-year.

The industry, however, faced a setback in June 2025, as total cement dispatches dropped by 2.8 percent year-on-year to 3.46 million tons. The decline was largely attributed to a sharp 15.7 percent fall in local sales, which stood at 2.60 million tons for the month. On the other hand, exports continued their upward momentum, soaring by 81.7 percent to 0.86 million tons in June.

Despite persistent challenges in the domestic market, the export-driven recovery offers a silver lining for the cement sector. Industry stakeholders hope that stabilization in local economic conditions and potential growth in infrastructure projects could help revive domestic demand in the coming quarters.