Recently, the cement industry in Pakistan has shown a complex situation of "hot outside and cold inside". According to the latest data released by the Pakistan Cement Manufacturers Association (APCMA), in the first nine months of fiscal year 2024-2025 (July 2024-March 2025), Pakistan's cement exports reached 6.53 million tons, up 28% year-on-year. However, consumption in the local market continued to decline, with consumption in the first nine months of only 27.46 million tons, down 7% from the same period last year. This situation of "ice and fire" reflects the double challenges of the industry under the pressure of globalization and local economy.
Export growth: Overseas markets become a bright spot
Data show that in the first nine months of the 2024-2025 fiscal year, Pakistan's cement exports reached 6.53 million tons, up 28% from 5.1 million tons in the same period last year. Among them, the monthly export volume in March was 609 thousand tons, an increase of 14%, an increase of 1%. Markets in Africa, the Middle East and South Asia have become major export destinations, and demand growth and logistics efficiency are key factors driving exports.
This outstanding export performance has not only brought considerable revenue to the industry, but also proved the competitiveness of Pakistani cement in the global market. Especially in the context of the recovery of global construction demand, Pakistan Cement has successfully entered many emerging markets by virtue of its price advantage and quality assurance. Weak
domestic demand: In sharp contrast to the continued downturn
in the local market and the strong growth of exports, consumption in the local market continues to decline. In the first nine months of fiscal year 2024-2025, local cement consumption was only 27.46 million tons, down 7% from the same period last year. Local consumption in March was 2.96 million tons, down 11% from the same period last year and 3% from February. According to
the analysis, the main reasons for the weakness of local demand include the slowdown of construction activity, rising inflation, high interest rates and uncertainties in infrastructure and real estate development. The combined effect of these factors has led to a decline in the activity of the domestic construction industry and a shrinking demand for cement.
Industry Outlook: External Heat and Internal Coldness
Although export growth has injected vitality into the industry, the continued downturn in the local market has exposed the industry to long-term risks. Manufacturers generally rely on domestic demand to maintain operating costs, and a sustained decline in domestic demand may affect employment, capacity and price strategies. If domestic demand fails to recover in time, the industry may fall into the dilemma of "strong outside and weak inside". Although export growth is a positive sign, the weakness of the local market may weaken the overall stability of the industry. Faced with this situation, the industry has called for more supportive policies from the government, including: active policies to promote construction to stimulate infrastructure and real estate development; lower taxes and fees on raw materials to reduce production costs; and incentives for developers to promote housing construction. These measures are considered essential to restore local demand and provide a more stable growth driver for the industry.
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