Pakistan’s cement industry experienced a significant slowdown in May 2026, with total cement dispatches declining by 21.02 percent year-on-year to 3.84 million tons amid weaker domestic demand and a sharp drop in exports.
According to data released by the All Pakistan Cement Manufacturers Association (APCMA), local cement dispatches fell 17.17 percent to 3.21 million tons compared to 3.87 million tons recorded in May 2025. Export volumes witnessed an even steeper decline, dropping 36.06 percent to 632,648 tons from 989,434 tons during the same period last year.
Manufacturers in northern Pakistan dispatched 2.66 million tons of cement during the month, reflecting a 22 percent decrease compared to May 2025. Meanwhile, southern-based producers recorded dispatches of 1.18 million tons, down 18.7 percent year-on-year. Domestic sales in the North fell by 16.05 percent, while southern producers experienced a 22.21 percent decline in local sales.
Exports remained concentrated in the southern region, as northern manufacturers reported no export dispatches during May. Southern exports also declined by 15.41 percent compared to the previous year, totaling 632,648 tons.
Despite the weak monthly performance, the industry maintained positive momentum during the first eleven months of FY2025-26. Total cement dispatches from July 2025 to May 2026 increased by 6.44 percent to 46.26 million tons, compared to 43.46 million tons during the corresponding period of the previous fiscal year.
Domestic demand remained the primary contributor to growth, with local dispatches rising 8.26 percent to 38.01 million tons during the eleven-month period. However, export volumes edged down 1.21 percent to 8.24 million tons.
North-based manufacturers recorded overall dispatch growth of 6.8 percent during the fiscal year to date, supported by a 9.49 percent increase in domestic sales. However, exports from the region plunged nearly 46 percent. Southern producers posted dispatch growth of 5.6 percent, aided by stronger export performance, which increased 8.41 percent over the same period.
Commenting on the outlook, APCMA expressed optimism regarding the upcoming federal budget and said the industry expects policy measures that support local manufacturing, infrastructure development, and the resolution of operational challenges facing the sector.
The association also welcomed Pakistan’s efforts to promote regional stability and reduce geopolitical tensions in the Middle East, which could help improve business confidence and economic activity.
