The Pakistan Cement industry has started FY2027 with stronger capacity utilization. Overall utilization reached 64% in July 2026.
The latest figure is nearly double the level recorded during July 2022. The improvement reflects recovering demand and increased production activity across the industry.
According to Arif Habib Limited (AHL), the recovery was visible across both major cement regions. These include the northern and southern regions of Pakistan.
However, the pace of improvement differed significantly between the two regions. The South recorded a much stronger recovery compared with the North.
Cement capacity utilization in the North reached 56% in July 2026. The figure stood at 37% during the same month in 2022.
The improvement in the North was mainly supported by recovering domestic cement demand. Higher local demand allowed manufacturers to increase production during the month.
The southern region delivered a stronger performance during the same period. Its capacity utilization reached 98% in July 2026.
The South had recorded capacity utilization of only 27% in July 2022. The latest figure represents an increase of around 3.6 times over four years.
The strong performance in the South was supported by several factors. Higher cement exports played an important role in improving production levels.
Recovering domestic demand also provided additional support to cement manufacturers in the region. These factors allowed southern producers to operate close to full capacity.
The latest figures indicate a broad recovery across the Pakistan Cement industry. However, regional performance continues to vary considerably.
Northern manufacturers are benefiting mainly from stronger domestic demand. Southern producers have received additional support from improving export activity.
The increase in overall capacity utilization provides a positive start to FY2027. It suggests that demand conditions have improved compared with previous years.
The cement industry could receive further support if demand continues to recover. A sustained improvement could allow manufacturers to maintain stronger production levels.
Domestic construction activity will remain important for the industry’s performance. Stronger demand from local markets could help improve capacity utilization further.
Exports could also support manufacturers, particularly those operating in the southern region. Continued export demand may help sustain high production levels.
The Pakistan Cement industry entered FY2027 with a stronger operating position. The 64% utilization rate reflects significant improvement compared with July 2022.
The difference between the two regions remains notable. The South operated at almost full capacity, while the North recorded utilization of 56%.
According to AHL, the recovery in demand could provide further support to cement manufacturers. However, the trend will need to continue throughout FY2027.
Manufacturers may benefit if domestic demand and exports remain stable. Higher utilization could also support production activity across the sector.
The July data provides an encouraging start to the new financial year. It also points to improving conditions for cement producers across Pakistan.
The Pakistan Cement sector will continue to depend on demand trends during the coming months. Sustained recovery could help manufacturers maintain stronger capacity utilization throughout FY2027.
