Karachi: Pakistan's local cement dispatches are projected to increase by 11% year-on-year to 3.59 million tons in July 2026, signaling robust domestic demand as the fiscal year 2027 begins. The growth in local sales is attributed to a steady rise in housing and construction activities across the country.

According to JS Global, the analysis is based on actual dispatch data for the first 19 days of July, during which local sales reached 2.1 million tons. The momentum in domestic demand is reflected in the average daily sales figures, particularly in the North region, where sales initially ranged from 100,000 to 103,000 tons per day in the first week, before a slight dip to 98,000 tons per day in the second week, and a subsequent rise to 106,000 tons per day at the start of the third week. Meanwhile, the South region maintained an average of 20,000 tons per day over the same period.

On a month-to-month basis, local cement dispatches are predicted to rise marginally by 1%. However, dispatches in the North are expected to decline by 3%, primarily due to the onset of the monsoon season. Export dispatches, on the other hand, are anticipated to fall by 30% year-on-year and 11% month-on-month to 0.70 million tons in July 2026, largely owing to the absence of exports to Afghanistan from North-based manufacturers.

Total cement dispatches in Pakistan for July 2026 are estimated to reach approximately 4.29 million tons, marking a 2% year-on-year increase but a 1% decline from the previous month. The fiscal year 2026 saw total cement dispatches climb to 50.52 million tons, a 7% year-on-year rise, driven mainly by a 10% increase in local dispatches.

The cement capacity utilization in July 2026 is expected to stand at 61%, up from 60% in July 2025. Local capacity utilization is also forecasted to improve to 51%, compared to 46% in the previous year. Retail cement prices have increased by 5-6% year-on-year to Rs1,502 per bag in July 2026, compared to Rs1,414 per bag in July 2025, mainly due to higher fuel and transportation costs, as reported by the Pakistan Bureau of Statistics.

Looking ahead, domestic cement growth for fiscal year 2027 is projected to reach 8%, continuing the trend of rising demand within the country.