FLASHNEWS:

Domestic Demand Fuels 7.2% Growth in Cement Dispatches for FY26

Islamabad: Cement dispatches in fiscal year 2026 rose by 7.2% year-on-year, reaching a total of 50.5 million tons, primarily driven by an increase in domestic demand, according to a recent press release.

According to JS Global, domestic dispatches experienced a 9.5% year-on-year increase, while export dispatches saw a 2.2% decline. The reduction in exports was largely due to a significant 54% drop in northern exports, attributed to the closure of the Afghanistan border, which overshadowed a 9.4% rise in southern exports.

In June 2026, cement dispatches amounted to 4.3 million tons, marking an 18.4% year-on-year and a 13% month-on-month increase. This rise was fueled by a 26.8% year-on-year uptick in local dispatches, as construction activities resumed after the Eid holidays, supported by a higher number of working days compared to May 2026. Meanwhile, exports declined by 8.7% year-on-year, continuing an eight-month trend of no exports from the North region.

Looking ahead, JS Global forecasts domestic cement dispatch growth of 5% for FY27, spurred by a reduction in property transaction taxes and housing incentives like the Apna Ghar scheme. However, the press release also noted that provincial governments have collectively cut their Annual Development Programs by 28% in their respective budgets, which could impact future volumes.