Pakistan’s cement industry has recorded its strongest recovery in four years. In July 2026, overall capacity utilization rose to 64 percent. This is almost double the level seen in the same month of 2022.
According to a report by Arif Habib Limited (AHL), both the northern and southern regions showed clear improvement, though the pace differed.
In the North, capacity utilization climbed to 56 percent in July 2026, up from 37 percent four years earlier. The gain came mainly from better domestic demand for cement used in construction.
The South region performed even better. Capacity utilization jumped to 98 percent, compared with only 27 percent in July 2022. This means factories in the South are now running almost at full strength. Higher cement exports and recovering local demand helped drive this sharp rise.
The strong start to the new financial year (FY2027) is a positive sign for manufacturers. If demand continues to grow, cement companies could see further support in production and sales throughout the year.
The recovery comes after a long period of low utilization caused by slow construction activity and economic challenges. Rising local use of cement and growing export opportunities have now given the industry a much-needed boost.