The All Pakistan Cement Manufacturers Association (APCMA) has reported that total cement dispatches in January 2025 reached 3.89Mt, marking a 14.1 per cent increase from 3.41Mt in January 2024. Domestic dispatches rose by 11.6 per cent to 3.31Mt, while export dispatches saw a significant 30.3 per cent increase to 581,691t, compared to 446,595t in January 2024.
According to Usama Rauf of AKD Securities Limited, the strong annual growth in local offtakes can be attributed to a low baseline in January 2024, when construction activities were disrupted by electoral events. The recovery has been further supported by stable cement prices in the northern region. However, severe weather conditions contributed to a temporary decline in monthly dispatch volumes.
Regional breakdown
North-based mills dispatched 2.73Mt in January 2025, reflecting a 12.1 per cent increase from 2.43Mt in January 2024. Of this, 2.67Mt was for domestic consumption, a rise of 11.9 per cent from 2.39Mt in the previous year. Exports from North-based mills increased by 21.4 per cent to 59,355t from 48,883t.
South-based mills recorded dispatches of 1.16Mt, a 19 per cent increase from 0.98Mt in January 2024. Domestic dispatches by South mills rose by 10.6 per cent to 644,173t, while exports surged by 31.3 per cent to 522,336t.
7MFY25 performance
For the first seven months of FY25, total dispatches reached 26.83Mt, a 1.7 per cent decrease from 27.30Mt in the corresponding period last year. Domestic dispatches declined by 7.6 per cent to 21.44Mt, down from 23.20Mt, while exports rose by 31.5 per cent to 5.39Mt.
North-based mills dispatched 17.85Mt domestically during the period, a 6.8 per cent drop from 19.16Mt. Exports from the North increased by 28.4 per cent to 1.05Mt, up from 819,353t in the previous year. Total dispatches from North mills declined by 5.4 per cent to 18.91Mt.
In the South, domestic dispatches fell by 11.3 per cent to 3.58Mt, down from 4.04Mt in 7MFY24. However, exports from South mills rose by 32.3 per cent to 4.34Mt, compared to 3.28Mt in the same period last year. Total dispatches from South mills increased by 8.2 per cent to 7.92Mt.
Industry concerns
An APCMA spokesperson highlighted ongoing concerns about the high duties and tax structure on cement. “Cement is an essential commodity, not a luxury item. Rationalising taxes will reduce costs for consumers, stimulate construction activities, and create jobs in the sector,” he said.
These positive dispatch trends, coupled with improvements in macroeconomic indicators such as inflation and currency stabilisation, are expected to support further growth in Pakistan’s cement sector in the coming months.
