ISLAMABAD: Pakistan’s domestic cement sales rose 8% to 7.1 million tonnes during July-August 2026, reflecting stronger local demand and increased construction activity at the start of FY2026-27.
Domestic cement dispatches increased from 6.5 million tonnes in the same period last year to 7.1 million tonnes this year, according to the Ministry of Planning, Development and Special Initiatives’ Monthly Development Update for September 2026.
Overall cement dispatches, including both domestic sales and exports, grew at a slower rate of 2.8% to 8.3 million tonnes during the first two months of the fiscal year.
The difference between the 8% increase in domestic sales and the 2.8% rise in total dispatches suggests that early growth in the cement industry was driven mainly by the local market rather than exports.
The Planning Ministry linked the rise in cement sales to stronger domestic demand and expanding construction activity.
The latest figures extend the improvement seen at the beginning of the fiscal year and come alongside signs of recovery in Pakistan’s broader industrial sector.
Industrial output also shows recovery
Large-Scale Manufacturing grew 3.03% year-on-year in July 2026, with 13 of the 22 sectors covered by the index recording positive growth.
Automobile production posted the strongest increase at 57.01%, followed by other transport equipment at 40.2%, tobacco at 35.8% and wearing apparel at 22.03%.
The broad-based improvement indicates continued industrial recovery at the start of FY2026-27, although overall LSM growth remained below the 8.93% recorded in July of the previous year.
Other indicators also pointed to stronger domestic economic activity.
Imports of goods and services increased 11.1% to $14.008 billion during July-August 2026. The Planning Ministry said the rise reflected stronger economic activity and increased demand for productive and capital goods.
Development spending supports construction activity
Public-sector development spending is continuing under the Rs1 trillion federal Public Sector Development Programme for FY2026-27.
The programme includes Rs255 billion in foreign-loan rupee cover, with resources being directed toward fast-moving and high-impact ongoing projects amid fiscal constraints.
During August, the Central Development Working Party considered a substantial 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 programme also includes transport and communications projects aimed at improving road connectivity and urban infrastructure.
According to the ministry, these projects are expected to improve accessibility, public mobility and basic services.
The ministry also considers infrastructure and public-service investment an important driver of economic activity because such spending can strengthen productive capacity and generate 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 FY2026-27.
With total cement dispatches rising by only 2.8%, the latest data shows that the industry’s early fiscal-year growth has been led primarily by domestic demand.