ISLAMABAD: Pakistan’s cement industry has recorded its first sustained rise in average monthly domestic demand in five years, signaling a gradual recovery in construction activity. According to latest industry data, overall cement offtake increased by 11 percent, driven primarily by stronger local dispatches, while exports remained constrained due to border bottlenecks and weak overseas demand.
Over the past several years, growth in total cement offtake was largely supported by rising exports, which masked sluggish domestic construction. Since FY22, economic instability, reduced public development spending and cautious household investment have suppressed local demand. By FY25, exports accounted for nearly one fifth of total dispatches, even as domestic consumption hovered near a seven year low.
The recent improvement in local dispatches points to stabilisation in public sector development projects after prolonged funding disruptions and cost overruns. Infrastructure spending appears to be regaining traction, contributing to improved cement consumption across key urban markets.
Private sector construction is also expected to receive support from the government’s subsidised mortgage scheme for first time homebuyers. Although the continuity of such incentives remains uncertain, the policy is projected to stimulate housing demand and encourage fresh investment in real estate.
Developers are awaiting a comprehensive construction package that could unlock stalled projects facing funding shortages and weak investor confidence. Historically, such incentives have generated quick economic activity, boosted short term employment and supported allied sectors including steel and cement, though often at the cost of long term structural reforms.
For cement manufacturers, stronger domestic demand offers improved capacity utilisation and greater pricing stability. With exports facing headwinds, a shift toward local markets could enhance profitability for major and mid tier producers while reinforcing the industry’s recovery trajectory.
