By Ayesha Saba

Pakistan’s domestic cement sales increased 8% to 7.1 million tonnes during July-August 2026, indicating stronger local demand and increased construction activity at the beginning of FY2026-27.

Domestic cement dispatches rose from 6.5 million tonnes in July-August 2025 to 7.1 million tonnes in the corresponding period this year, according to the Ministry of Planning, Development and Special Initiatives' Monthly Development Update – September 2026, available with Wealth Pakistan.

Overall cement dispatches, which include domestic sales and exports, increased at a slower pace of 2.8% to 8.3 million tonnes during the two-month period.

The gap between the 8% surge in domestic sales and the 2.8% growth in total dispatches indicates that the industry's expansion during the opening two months of FY2026-27 was driven primarily by local demand.

The Planning Ministry specifically linked the increase in domestic cement sales to stronger domestic demand and expanding construction activity.

The latest two-month figures extend the strong domestic performance recorded at the beginning of the fiscal year. The cement industry's performance comes alongside continued recovery in Pakistan's broader industrial sector.

Large-Scale Manufacturing (LSM) grew 3.03% year-on-year in July 2026, with 13 of the 22 sectors covered by the index recording positive growth.

The strongest increase was recorded in automobiles, where production rose 57.01%, followed by other transport equipment with 40.2% growth, tobacco at 35.8% and wearing apparel at 22.03%.

The broad-based nature of the expansion, with a majority of LSM sectors recording growth, points to continued industrial recovery at the start of FY2026-27, although the pace of overall LSM growth was lower than the 8.93% recorded in July of the previous year.

Other economic indicators also point to stronger domestic activity.

Imports of goods and services increased 11.1% to $14.008 billion during July-August 2026. The Planning Ministry said the increase reflected stronger domestic economic activity and rising demand for productive and capital goods.

Public-sector development activity is also continuing under the Rs1 trillion federal Public Sector Development Programme for FY2026-27.

The programme includes Rs255 billion as foreign-loan rupee cover, with development resources being focused on fast-moving, high-impact ongoing projects amid fiscal constraints.

During August, the Central Development Working Party considered a sizeable portfolio of infrastructure schemes, including major water, transport and physical planning projects.

Three water supply and wastewater management projects with a combined cost of Rs227.2 billion were recommended to the Executive Committee of the National Economic Council for Lahore, Karachi and Gwadar.

The development portfolio also included transport and communications schemes intended to improve road connectivity and urban infrastructure. According to the ministry, such projects will enhance accessibility, public mobility, and basic services.

The ministry describes development spending as a driver of economic activity because investment in infrastructure and public services strengthens productive capacity while generating direct and indirect employment.

Against this backdrop, the 8% increase in domestic cement sales to 7.1 million tonnes provides a direct industry indicator of stronger local demand during the first two months of the fiscal year.

With overall dispatches rising only 2.8%, the latest figures also show that the cement industry's early FY2026-27 growth has been domestically driven, rather than coming primarily from overseas sales.

Credit: INP-WealthPk