Pakistan’s cement industry started FY2027 on a stronger footing, with overall capacity utilization reaching 64% in July 2026, nearly double the level recorded in the same month four years earlier, as recovering demand supported production activity.
According to Arif Habib Limited (AHL), the improvement reflects a broad-based recovery across both the northern and southern cement regions, although the pace of recovery has varied significantly between the two.
Cement capacity utilization in the North region rose to 56 percent in July 2026, compared with 37 percent in July 2022. The gradual improvement was primarily supported by a recovery in domestic cement demand.
The South region recorded a much sharper increase, with capacity utilization reaching 98 percent in July 2026, compared with just 27 percent in July 2022. This represents an increase of around 3.6 times over the four-year period.
The strong performance in the South was supported by higher cement exports as well as recovering domestic demand, allowing manufacturers in the region to operate at near-full capacity.
The recovery in demand could provide further support to cement manufacturers if the trend continues through FY2027.
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