February 3, 2025 – The cement industry in Pakistan experienced significant growth in January 2025, with total cement despatches increasing by 14.08% compared to the same month last year, according to data released by the All Pakistan Cement Manufacturers Association (APCMA).
This surge was driven by robust domestic demand as well as a sharp increase in export volumes.
During January 2025, local cement despatches rose to 3.313 million tons, up 11.64% from 2.967 million tons in January 2024. Export despatches saw an even more pronounced growth of 30.25%, reaching 581,691 tons compared to 446,595 tons in the previous year. Overall, total cement despatches for the month amounted to 3.894 million tons, surpassing the 3.414 million tons recorded in January 2024.
Regional Performance
The regional breakdown of despatches shows a steady upward trend across both North and South zones. Cement mills in the North dispatched 2.728 million tons in January 2025, reflecting a 12.08% increase over the 2.434 million tons dispatched in the same month last year. Meanwhile, South-based mills dispatched 1.166 million tons, marking a substantial 19.04% rise from 0.980 million tons in January 2024.
In domestic markets, North-based mills recorded an 11.89% increase in sales, dispatching 2.669 million tons in January 2025 compared to 2.385 million tons the previous year. Similarly, South-based mills delivered 644,173 tons to local markets, a 10.63% improvement from the 582,258 tons dispatched in January 2024.
On the export front, North-based mills saw a 21.42% increase in shipments, rising from 48,883 tons in January 2024 to 59,355 tons in January 2025. Exports from the South experienced an even stronger boost, climbing by 31.34% to 522,336 tons from 397,712 tons in the same period last year.
Cumulative Performance: July 2024 – January 2025
Despite the January surge, overall cement despatches during the first seven months of the current fiscal year (July 2024 to January 2025) declined by 1.71% year-on-year, totaling 26.827 million tons compared to 27.295 million tons in the corresponding period last year. Domestic despatches for this period fell by 7.59% to 21.435 million tons, compared to 23.196 million tons in the previous year. However, this decline was offset by a sharp increase in exports, which rose 31.54% to 5.392 million tons from 4.099 million tons during the same period last fiscal year.
North-based mills dispatched 17.854 million tons domestically in the first seven months of the current fiscal year, down 6.80% from 19.157 million tons in the previous year. However, exports from the North surged by 28.37%, rising to 1.051 million tons from 819,353 tons in the same period last year. Consequently, total despatches from North-based mills fell by 5.36% to 18.905 million tons from 19.976 million tons in the previous year.
In contrast, South-based mills reported an 11.32% decline in domestic despatches, which dropped to 3.582 million tons from 4.039 million tons. Nevertheless, exports from the South skyrocketed by 32.33% to 4.340 million tons from 3.280 million tons. As a result, total despatches from South-based mills increased by 8.24% to 7.922 million tons compared to 7.319 million tons in the corresponding period last fiscal year.
Industry Challenges and Future Outlook
Despite the overall positive performance, the cement industry continues to face challenges, particularly in the form of taxation and duties that restrict domestic growth. A spokesman for APCMA expressed concerns regarding the current tax structure, which he described as a major bottleneck for demand in the local market.
“Cement is a fundamental component in construction and should not be treated as a luxury item. The government must reconsider its tax policies to make cement more affordable for consumers, which in turn would stimulate construction activity and job creation in the sector,” the spokesman stated.
Moving forward, industry experts anticipate that the ongoing increase in exports, coupled with potential policy adjustments, could help sustain the growth momentum in the cement sector. However, local demand will heavily depend on the government’s willingness to create a favorable regulatory environment, particularly in terms of taxation and infrastructure investment.