Local Cement Sales Fall by 10.4% in FY25’s First Half, Exports Rise
Pakistan’s cement sector faced a challenging first half of fiscal year 2025 (FY25), as local sales saw a significant decline of 10.4 percent, dropping from 20.228 million tonnes in the same period last year to 18.122 million tonnes. This contraction reflects the ongoing struggles within the domestic market, exacerbated by economic pressures and fluctuating demand.
However, the sector found some respite in the form of a sharp 32 percent increase in cement exports, which rose to 4.810 million tonnes from 3.655 million tonnes in the previous year. This export surge helped mitigate the overall decline in total cement despatches, which fell by 3.9 percent, reaching 22.933 million tonnes, compared to 23.881 million tonnes during the corresponding period in FY24. December 2024 saw a 5 percent drop in local cement despatches, with only 3.370 million tonnes dispatched, down from 3.539 million tonnes in December 2023. Despite this, exports surged by 49.35 percent, reaching 783,550 tonnes from 524,656 tonnes in the same month last year.
As a result, total cement despatches for December saw a modest increase of 2.23 percent, rising to 4.154 million tonnes from 4.063 million tonnes in December 2023. The All Pakistan Cement Manufacturers Association (APCMA) has expressed growing concern over the continuous decline in local cement demand. The association has called on the government to take immediate action by reducing duties and taxes on cement, arguing that such measures would not only stimulate demand but also help the industry better utilise its idle capacity. The cement industry has been under pressure due to rising production costs, as well as macroeconomic factors that have dampened local demand. However, with exports offering a lifeline, the sector hopes that a more supportive domestic policy environment could help reinvigorate the local market. The APCMA’s appeal for government intervention highlights the urgent need for measures that can stabilise the sector, ensuring that Pakistan’s cement manufacturers can maintain competitiveness both at home and abroad.
