Karachi, The cement industry in Pakistan has shown significant signs of recovery, with a marked increase in offtakes in March 2024. Total cement offtakes rose by 21% month-on-month and 4% year-on-year, reaching 3.94 million tons, buoyed by a surge in export demand.

According to AKD Securities Limited, the growth in cement offtakes was primarily driven by improved export figures. Domestic dispatches increased to 3.34 million tons, up 17% month-on-month but down 1% year-on-year. Exports notably jumped by 53% month-on-month and 38% year-on-year to 0.61 million tons. The report also highlighted a significant decrease in local and Afghan coal prices, which are essential for cement production, contributing to cost efficiencies within the sector.

Looking forward, the cement sector is expected to continue its growth trajectory into FY25F, driven by a backlog in demand due to previously halted construction and repair activities, anticipated easing of interest rates, a decline in steel prices, and an overall improvement in the economic outlook. AKD Securities remains optimistic about the sector's prospects, recommending LUCK, MLCF, and FCCL as top picks, with target prices set for December 2024.