Karachi: Cement demand in Pakistan has experienced a notable rebound, driven by a resurgence in construction activities, as reported in a recent press release. The increase in demand, coupled with a lower policy rate, has led to a 7% year-on-year increase in cement dispatches, totaling 50.5 million tons for the fiscal year 2026. Domestic sales saw a 9% year-on-year recovery, reaching 41.5 million tons.

According to AKD Securities Limited, the improvement in the cement industry is reflected in the increased industry-wide utilization, which rose to 59% in FY26 from 56% in the previous fiscal year. This uptick is attributed to a domestic-led pickup in offtakes. The fiscal year 2027 budget is expected to further support cement demand with measures such as a higher Public Sector Development Program (PSDP), property tax relief, and a reduction in the super tax.

AKD Securities Limited has identified LUCK, FCCL, and DGKC as top picks in the sector, with target prices set for December 2026 at PKR 735 per share, PKR 88 per share, and PKR 389 per share, respectively.