Karachi: Cement demand in Pakistan is set to increase in the fiscal year 2026, spurred by a government push in public sector development programs and a revival in the construction industry, according to a report by AKD Securities Limited. This follows a slight rise in cement dispatches in fiscal year 2025, despite a decline in domestic sales.

Cement dispatches reached 46.22 million tons in fiscal year 2025, marking a 2% year-on-year increase driven primarily by higher export volumes. However, domestic sales of cement fell to an eight-year low during the same period.

Industry-wide capacity utilization edged up to 54.8% in fiscal year 2025, a minor increase of 0.2 percentage points from the previous year. This uptick reflects a modest recovery in the sector, which has struggled with declining domestic sales.

AKD Securities predicts a 6% year-on-year growth in domestic cement offtakes in fiscal year 2026. The anticipated growth is attributed to easing interest rates, increased government expenditure, and sustained demand from the real estate sector.

The report identifies Lucky Cement Limited (LUCK) and Fauji Cement Company Limited (FCCL) as preferred picks in the sector, suggesting potential growth opportunities for investors in these companies.