Pakistan Cement Sales Drop 21% in May Amid Weak Demand
Pakistan’s cement dispatches fell 21.02% year-on-year in May 2026 as domestic demand weakened and exports dropped sharply.
Intelligence analysis by GPT-5.4 Mini
May was a soft month for Pakistan’s cement sector, with both local sales and exports down from a year earlier. Even so, dispatches remained higher over the first 11 months of FY2025-26, and the industry is hoping the federal budget will support manufacturing and infrastructure.
Pakistan’s cement sellers had a weak May, like a shop where fewer people came to buy bricks for building. Even though that month was slow, the bigger picture for the year is still a bit better than last year.
Analysis
May slowdown
Pakistan’s cement industry saw a steep decline in May 2026. According to data from the All Pakistan Cement Manufacturers Association, total dispatches fell 21.02% year-on-year to 3.84 million tons, driven by weaker domestic demand and a much smaller export volume.
Local dispatches dropped 17.17% to 3.21 million tons from 3.87 million tons in May 2025. Exports fell even faster, down 36.06% to 632,648 tons from 989,434 tons a year earlier. The breakdown by region also showed broad weakness: northern manufacturers dispatched 2.66 million tons, down 22% year-on-year, while southern producers shipped 1.18 million tons, down 18.7%.
Domestic sales fell in both regions. North-based producers reported a 16.05% decline in local sales, while southern producers saw a 22.21% fall. Exports stayed concentrated in the south, with northern manufacturers recording no export dispatches in May.
FY-to-date picture
Despite the weak monthly reading, the sector remained ahead over the first eleven months of FY2025-26. Total dispatches from July 2025 to May 2026 rose 6.44% to 46.26 million tons. Domestic demand was the main support, with local dispatches up 8.26% to 38.01 million tons, while exports slipped 1.21% to 8.24 million tons.
Regional performance was mixed. North-based manufacturers posted 6.8% growth in dispatches for the fiscal year to date, helped by a 9.49% rise in domestic sales, but exports from the region fell nearly 46%. Southern producers grew 5.6% overall, supported by an 8.41% increase in exports.
Outlook
APCMA said it is hopeful the upcoming federal budget will include measures that support local manufacturing, infrastructure development, and fixes for operational problems in the sector. The association also said Pakistan’s efforts to reduce tensions in the Middle East could help business confidence and economic activity.
Key points
- Total cement dispatches fell 21.02% year-on-year in May 2026 to 3.84 million tons.
- Local dispatches dropped 17.17%, while exports declined 36.06%.
- Northern manufacturers saw a 22% fall in dispatches; southern producers were down 18.7%.
- For July 2025 to May 2026, total dispatches were still up 6.44% year-on-year.
- APCMA wants the federal budget to support manufacturing, infrastructure, and sector operations.
If the federal budget includes support for local manufacturing and infrastructure, cement demand could improve. The sector’s year-to-date growth also suggests there is still some underlying demand to build on.
If weak domestic demand continues, monthly dispatches could stay under pressure and exports may not recover quickly. The northern region’s sharp export decline shows how uneven the recovery can be across producers.
