By Ayesha Saba
ISLAMABAD– Without timely government intervention and a clear strategy, the ongoing slump in the cement industry could result in job losses and negatively impact allied sectors like steel, glass, and construction services.
Recent data released by All Pakistan Cement Manufacturers Association further underscores the industry’s grim outlook. Local cement shipments during March 2025 stood at 2.961 million tonnes, reflecting a significant drop of 11.31% compared to 3.338 million tonnes in the same month of the previous year.
While export dispatches remained relatively stable — 608,614 tonnes in March 2025 versus 605,142 tonnes in March 2024 — the total cement dispatches dropped by 9.48% year-on-year, falling from 3.944 million tonnes to 3.569 million tonnes. These figures not only indicate weak domestic demand but also signal wider challenges affecting the construction sector and the broader economy.
Budget Cuts to PSDP Blamed for Cement Demand Decline
During an interview with WealthPK, Hassam Ali, a real estate expert at All Pakistan Real Estate Association, pointed out that the cement industry, which serves as a barometer for infrastructure development, is currently struggling due to limited government expenditure on public development projects.
“Budget cuts in the Public Sector Development Programme (PSDP) over the last two years have choked demand for construction materials, particularly cement,” he noted, adding that such trends hamper both economic momentum and the resilience of local manufacturing.
He also pointed out that weak exports, though stable for now, cannot compensate for a shrinking local market. He warned that with manufacturers operating below optimal capacity, the industry faces a prolonged downturn unless policy reforms are introduced.
Ali said beyond short-term relief, the government must devise a comprehensive industrial policy that links construction sector growth to national development priorities. “Without such intervention, the continuing slump in the cement sector could ripple through the economy, causing job losses and stagnation in allied sectors.”
Upcoming Budget Seen as a Turning Point
In his view, government pricing policies must reflect the importance of key industries like cement in the broader economy.
He also stated that the upcoming budget represents a critical opportunity for the government to address these pressing concerns and unlock the full potential of the cement industry.
“Well-structured policies, designed to stimulate local demand, increase exports, and promote sustainable growth, could help the industry overcome its current challenges and contribute more effectively to Pakistan’s economic development,” the real estate expert noted.
