Pakistan’s cement industry witnessed a sharp contraction in May 2026, with total dispatches falling 21.02% year-on-year to 3.84 million tons, driven by declines in both local sales and exports.

According to data released by the All Pakistan Cement Manufacturers Association (APCMA), domestic cement dispatches dropped 17.17% to 3.21 million tons compared to 3.87 million tons in the same month last year. Export shipments fell more steeply by 36.06%, sliding to 632,648 tons from 989,434 tons a year earlier.

Region-wise breakdown showed North-based mills dispatching 2.66 million tons in May, down 22% year-on-year, while South-based producers recorded an 18.7% decline to 1.18 million tons. Domestic sales in the North decreased by 16.05%, whereas southern producers saw a sharper 22.21% fall in local dispatches.

Exports remained concentrated in the South, with North-based mills reporting no export activity during the month. Southern exports declined 15.41% year-on-year.

Despite the monthly downturn, the industry remained in growth territory for the ongoing fiscal year. Total cement dispatches rose 6.44% to 46.26 million tons during July–May FY2025-26, compared to 43.46 million tons in the same period last year.

Local demand continued to drive overall growth, with domestic dispatches increasing 8.26% to 38.01 million tons. However, exports slipped slightly by 1.21% to 8.24 million tons over the same period.

North-based mills posted a 6.8% rise in total dispatches over the eleven months, supported by a 9.49% increase in domestic sales, though exports from the region plunged nearly 46%. Southern mills recorded a 5.6% increase in total dispatches, aided by an 8.41% rise in exports.

The APCMA said it remains hopeful about policy support in the upcoming federal budget, expecting measures to strengthen local manufacturing and ease operational constraints. The association also welcomed efforts aimed at improving regional stability and reducing geopolitical tensions in the Middle East.