Karachi: Pakistan's local cement dispatches are anticipated to decrease by 11% year-on-year to 2.97 million tons in August 2026. The decline is attributed to an increase in ex-factory prices, higher diesel costs, and the impact of monsoon rains, according to a recent analysis based on dispatch data for the first 23 days of the month, where local sales stood at 2.1 million tons.
According to JS Global, average daily domestic sales in the North region remained around 82-85 thousand tons during the first week of August 2026, before declining to 62-65 thousand tons per day in the second week. However, in the third week, sales increased to 89-95 thousand tons per day. In the South region, average sales were consistent, ranging from 18-20 thousand tons per day during the same period.
On a month-on-month basis, local cement dispatches are expected to decline by 21%, primarily due to the monsoon season affecting the Northern region. Export dispatches are forecasted to decrease by 3% year-on-year, although there is an anticipated increase of 3% month-on-month to 0.73 million tons in August 2026. The year-on-year decline in exports is mainly due to the absence of exports to Afghanistan from North-based manufacturers.
The total cement dispatches in Pakistan for August 2026 are expected to be around 3.70 million tons, marking a decrease of 9% year-on-year and 17% month-on-month. For the first two months of the fiscal year 2027, total cement dispatches are projected to reach 8.18 million tons, down 1% year-on-year, while local dispatches are expected to rise by 3% year-on-year.
The cement capacity utilization in August 2026 is projected to be 53%, a decline from 58% in August 2025. Average retail cement prices have increased by 8-10% year-on-year to Rs1,557 per bag in August 2026, up from Rs1,412 per bag in August 2025, primarily due to higher fuel and transportation costs, as reported by the Pakistan Bureau of Statistics.
Looking ahead, the domestic cement growth for the fiscal year 2027 is expected to clock in at 8%.