Pakistan’s cement sales continue downward momentum in March

Pakistan’s total cement dispatches in March 2025 stood at 3.569 million tons, down from 3.944 million tons in the same month last fiscal year—a decline of 9.48%.

The rising costs of construction materials, coupled with high taxation, have slowed construction activity in the country impacting cement demand, an analyst said

According to data released by the All Pakistan Cement Manufacturers Association (APCMA), local cement dispatches during March 2025 were 2.961 million tons, reflecting an 11.31% drop from 3.338 million tons in March 2024. Export dispatches remained steady at 608,614 tons, compared to 605,142 tons in March 2024.

During the first nine months of the current fiscal year, total cement dispatches (domestic and exports) reached 33.993 million tons, a 1.48% decrease from the 34.503 million tons dispatched in the corresponding period last year.

Domestic dispatches during this period amounted to 27.461 million tons, down 6.61% from 29.403 million tons in the same period last year.

In contrast, export dispatches showed an upward trend, increasing 28.08% to 6.532 million tons, compared to 5.10 million tons in the same period of the previous fiscal year.

A spokesman for APCMA emphasized the critical role cement plays in the economy and expressed optimism that policymakers would consider reducing taxes and duties on cement in the upcoming budget to make the commodity more affordable for the public, thereby boosting domestic off-take.

The cement sector, listed on the KSE-100, posted a 36% year-over-year increase in profitability during the first half of fiscal year 2025 (1HFY25), reaching PKR 56.0 billion, up from PKR 41.1 billion in the same period last year.

Cement prices saw notable growth during 1HFY25. In the northern region, prices rose 23% year-over-year to an average of PKR 1,481 per bag. Meanwhile, prices in the southern region increased by 18% year-over-year, averaging PKR 1,386 per bag.

However, by February 2025, prices in the North fell by PKR 201 per bag from their peak of PKR 1,530 per bag, settling at an average of PKR 1,329 per bag. This decline was attributed to weakened local demand.