Cement industry sees modest growth in FY25

The cement industry recorded modest overall growth in the fiscal year 2024-25 despite a continued decline in local demand, according to data released by the All Pakistan Cement Manufacturers Association (APCMA). Total cement despatches reached 46.221 million tonnes in FY25, up 2.05% from 45.291 million tonnes the previous year. This marginal growth was driven largely by a 29.46% surge in exports, which rose from 7.110 million tonnes in FY24 to 9.204 million tonnes in FY25. However, domestic sales dropped by 3.05%, falling from 38.181 million tonnes to 37.017 million tonnes.

In June 2025 alone, overall cement despatches declined by 2.69% year-on-year to 3.457 million tonnes, compared to 3.552 million tonnes in June 2024. Domestic sales fell sharply by 15.65% to 2.597 million tonnes, while exports saw a significant 81.70% increase, reaching 859,204 tonnes from 472,865 tonnes in June 2024.

North-based mills despatched 2.445 million tonnes in June 2025, a decline of 10.21% from 2.723 million tonnes in June 2024. South-based mills despatched 1.01 million tonnes, up 21.99% year-on-year. In the domestic market, North-based mills saw a 14.43% decline, selling 2.237 million tonnes, while South-based mills saw a sharper drop of 22.50%, selling 360,814 tonnes locally.

Exports from the North surged 91.05% in June 2025 to 207,975 tonnes from 108,861 tonnes a year earlier. South-based mills also recorded a robust 78.91% rise in exports, reaching 651,229 tonnes.

For the full fiscal year, North-based mills despatched 30.726 million tonnes domestically, down 2.60% from 31.545 million tonnes in FY24. Exports from the North rose 15.56% to 1.684 million tonnes. Combined, total despatches from the North fell 1.79% to 32.410 million tonnes.

South-based mills recorded domestic despatches of 6.291 million tonnes, reflecting a 5.21% decline. However, exports soared 33.04% to 7.519 million tonnes, lifting total despatches from the South to 13.811 million tonnes, up 12.38% from the previous year.

An APCMA spokesperson said declining domestic demand remains a serious challenge for the sector and appealed to the government to reduce duties and taxes on cement. He stressed that cement is a basic necessity, not a luxury.

"We must find ways to increase the domestic off-take in order to utilise the idle capacity that will attract economic growth as well as employment opportunities and increased revenue for allied industries," he added.