Pakistan’s cement manufacturers saw a significant improvement in capacity utilization at the start of FY2027, with industry-wide utilization reaching 64% in July 2026 as domestic demand and exports continued to recover.

Arif Habib Limited (AHL) noted that overall cement capacity utilization in July was almost twice the level recorded in July 2022, highlighting a substantial improvement in industry activity over the past four years.

The recovery was visible in both major regions, although the South posted a much greater improvement. Capacity utilization in the North increased to 56% in July 2026 from 37% in July 2022, reflecting a gradual strengthening in domestic cement demand.

The South region delivered the biggest gain, with utilization climbing to 98% in July 2026, compared with only 27% four years earlier. This translates into an increase of nearly 3.6 times.

According to AHL, the sharp rise in the South was supported by stronger exports alongside an improvement in domestic demand, allowing cement producers in the region to utilize almost their entire available capacity.

The latest figures indicate that Pakistan’s cement sector has made considerable progress from the low utilization levels recorded in 2022. Continued recovery in construction activity and export demand could provide further support to industry utilization during FY2027.