Cement Demand Picks Up in July 2025: Signs of Construction Revival in Pakistan
After a slow patch in June, Pakistan’s cement industry bounced back strong in July 2025. Cement dispatches, a key sign of construction activity, were up 16% month-on-month, reaching 4 million tons. This jump is good news for the economy, especially at a time when Pakistan is trying to get back on a stable growth path.
Let’s break down what happened and what it could mean for the future.
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Why the sudden rise in cement demand?
Despite challenges like rainfall and transport delays (especially in the North), the rise in cement sales was fueled by a few important factors:
- Construction is picking up after the Eid holidays
- Hopes that the new budget will support real estate and housing
- Export demand is rising sharply, especially from neighboring countries
Dispatches breakdown: domestic vs exports
North Pakistan
- Domestic sales: Up 8% from June, 12% from last year
- Export sales: Up 11% from June, and more than double from last year
South Pakistan
- Domestic sales: Shot up 58% from June, and 54% from last year
- Export sales: Up 19% MoM, 73% YoY (reached 0.78 million tons)
The South region saw stronger growth, mainly due to better weather and strong export orders.
Cement prices and coal cost
Cement prices showed mixed trends:
- In the North, the average price per bag fell to PKR 1,390 (down 7% from last year)
- In the South, prices increased to PKR 1,446 (up 5% YoY)
Coal, which is a key input cost for cement, became cheaper:
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- International coal price dropped to $93.6/ton, down 17% YoY
- In local terms, coal is now around PKR 34,000/ton
This fall in coal prices could help cement companies improve their profit margins going forward.
What’s the outlook?
The government’s new budget for FY26 is focused on reviving construction and affordable housing. Key measures include:
- PKR 10 billion allocated for housing subsidies and loan mark-up support
- Tax credit on loans for houses up to 250 sq. ft or flats under 2,000 sq. ft.
These steps are expected to boost domestic demand for cement in the coming months.
On the export front, companies with a strong global footprint are also expected to benefit as regional demand rises.
Top cement companies to watch:
✅ Lucky Cement (LUCK)
✅ DG Khan Cement (DGKC)
✅ Fauji Cement (FCCL)
Other notable industry moves
- Lucky Cement, along with partners, has shown interest in acquiring a major stake (51–100%) in Pakistan International Airlines (PIA) as part of the government’s privatization push.
- Kohat Cement (KOHC) is setting up a real estate subsidiary and plans a stock split (5 shares for every 1 share).
- Cherat Cement (CHCC) and Shirazi Investments want to buy a 75.7% stake in Rafhan Maize, showing their interest in diversifying beyond cement.
Summary of July 2025 cement dispatches
| Region | Jul ’25 | Jun ’25 | MoM % | Jul ’24 | YoY % |
|---|---|---|---|---|---|
| North (Total) | 2.65 Mn Tons | 2.44 | +8% | 2.25 | +18% |
| • Domestic | 2.42 | 2.24 | +8% | 2.15 | +12% |
| • Exports | 0.23 | 0.21 | +11% | 0.10 | 1.3x |
| South (Total) | 1.35 | 1.01 | +33% | 0.82 | +65% |
| • Domestic | 0.57 | 0.36 | +58% | 0.37 | +54% |
| • Exports | 0.78 | 0.65 | +19% | 0.45 | +73% |
| Total | 4.00 | 3.46 | +16% | 3.07 | +30% |
July 2025 marks a strong comeback for Pakistan’s cement sector, hinting at a wider recovery in construction and real estate. With favorable government policies, falling coal prices, and strong export demand, the industry could be heading for a solid FY26.
For long-term investors, this sector might be worth a closer look.
Source: Taurus Securities
⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →
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