Driven by surging local construction and record exports, Pakistan's cement industry is pouring robust growth, with FY2023 production climbing to 47.8 million tons.
Key Takeaways
- In FY2023, Pakistan's cement production reached 47.8 million tons, marking a 6.5% increase from FY2022's 44.9 million tons due to enhanced capacity utilization.
- Local dispatches of cement in Pakistan for July 2023 stood at 3.78 million tons, up 14% YoY from 3.32 million tons in July 2022.
- Cement exports from Pakistan in FY2023 totaled 9.1 million tons, a 22% rise from 7.5 million tons in FY2022, driven by demand from Afghanistan.
- Pakistan's installed cement production capacity reached 78.3 million tons per annum as of 2023.
- There are 24 cement plants operational in Pakistan, with 19 in the north and 5 in the south as of 2024.
- Lucky Cement has the largest single plant capacity of 12.15 million tons per year at Pezu and Karachi.
- Pakistan cement exports to Afghanistan reached 5.2 million tons in FY2023, 57% of total exports.
- Total cement exports from Pakistan grew 22% to 9.1 million tons in FY2023.
- Cement exports value reached $450 million in FY2023, up from $380 million.
- Domestic cement consumption in Pakistan for FY2023 was 38.7 million tons.
- Local dispatches grew 5% to 38.7 million tons in FY2023.
- Per capita cement consumption in Pakistan is 190 kg annually as of 2023.
- Lucky Cement's domestic sales revenue was PKR 85 billion in FY2023.
- Total industry revenue from cement sales: PKR 650 billion in FY2023.
- Average profit per ton of cement sold: PKR 1,200 in FY2023.
Pakistan's cement industry grew significantly in 2023 through higher production and increased exports.
Capacity and Plants
- Pakistan's installed cement production capacity reached 78.3 million tons per annum as of 2023.
- There are 24 cement plants operational in Pakistan, with 19 in the north and 5 in the south as of 2024.
- Lucky Cement has the largest single plant capacity of 12.15 million tons per year at Pezu and Karachi.
- Bestway Cement's total capacity stands at 11.25 million tons across Hattar, Chakwal, and Karachi plants.
- DG Khan Cement's combined capacity is 9.9 million tons from four plants including Khairpur.
- Fauji Cement's capacity is 7.7 million tons from Nizampur and Dera Ghazi Khan plants.
- Maple Leaf Cement expanded capacity to 4.65 million tons with new line at Iskandarabad in 2023.
- Cherat Cement's total capacity is 4.5 million tons post-expansion in 2022.
- Kohat Cement has 4.1 million tons capacity from two plants in KPK.
- Pioneer Steel Mills added 1.2 million tons cement capacity in 2023 at Kharian.
- Average plant capacity in Pakistan's north region is 3.2 million tons per plant.
- South Pakistan cement plants have a combined capacity of 14.5 million tons.
- New capacity additions in FY2023 totaled 2.8 million tons, mainly by Lucky and Maple Leaf.
- Pakistan cement industry has 57 production lines operational as of 2024.
- Utilization rate of north region capacity was 68% in FY2023.
- South region capacity utilization averaged 55% in 1Q FY2024.
- Total grey cement capacity is 75.2 million tons, white cement 3.1 million tons.
- 15 new cement lines planned for addition by 2025, adding 10 million tons capacity.
- Gharibwal Cement's capacity increased to 3.15 million tons with Line III in 2023.
Capacity and Plants Interpretation
Pakistan's cement industry is ambitiously building castles in the air, with over 78 million tons of annual capacity, yet its plants are only about two-thirds full, suggesting someone might have gotten a bit too concrete about expansion plans.
Domestic Consumption
- Domestic cement consumption in Pakistan for FY2023 was 38.7 million tons.
- Local dispatches grew 5% to 38.7 million tons in FY2023.
- Per capita cement consumption in Pakistan is 190 kg annually as of 2023.
- North region domestic dispatches: 26.5 million tons in FY2023.
- South region local sales: 12.2 million tons in FY2023.
- Cement demand from public sector projects was 15 million tons in FY2023.
- Private sector housing absorbed 18.5 million tons cement in FY2023.
- Monthly domestic consumption in July 2023: 3.78 million tons.
- Consumption growth rate: 4.2% YoY in FY2023.
- Urban consumption accounts for 65% of total at 25.2 MT in FY2023.
- Rural areas consumed 13.5 million tons cement in FY2023.
- CPEC projects utilized 4.8 million tons cement by end-2023.
- Dam projects like Diamer-Bhasha consumed 1.2 MT cement in 2023.
- Housing demand under Naya Pakistan drove 2.5 MT extra consumption in FY2023.
- Bag sales domestically: 22 million tons in FY2023.
- Ready-mix concrete demand used 3.1 MT cement in 2023.
- Construction sector growth of 7.5% boosted consumption by 2.8 MT in FY2023.
- Average monthly consumption: 3.2 million tons in 1Q FY2024.
Domestic Consumption Interpretation
Pakistan's cement industry is building more than just structures, as evidenced by 38.7 million tons of domestic consumption where the public sector pours foundations (15 MT), private housing builds dreams (18.5 MT), and CPEC paves the future (4.8 MT), all while urban areas (25.2 MT) cement their dominance over rural ones (13.5 MT).
Environmental and Sustainability
- CO2 emissions per ton of cement in Pakistan averaged 0.65 tons in 2023.
- 42% of cement production used blended types reducing emissions by 15% in FY2023.
- Installed waste heat recovery capacity: 25 MW across 8 plants in 2023.
- Solar power usage in cement plants: 50 MW total capacity by 2023.
- Dust emission compliance: 95% of plants met NEQS standards in 2023 audit.
- Water recycling rate: 75% in top 10 plants, saving 20 million m3 annually.
- Alternative fuel usage: 12% coal replacement with RDF in 2023.
- Limestone quarrying reclamation: 1,200 hectares rehabilitated by 2023.
- NOx emissions reduced 20% post-SCR installations in 5 plants.
- Energy efficiency improved to 85 kWh/ton clinker from 92 in 2020.
- Biomass co-firing trials in 3 plants saved 50,000 tons coal equivalent.
- ESP efficiency for particulate control: 99.5% in modern plants.
- Total GHG emissions from industry: 32 million tons CO2e in 2023.
- Afforestation by cement firms: 2.5 million trees planted since 2010.
- Fly ash usage: 2.1 million tons blended, reducing virgin material by 10%.
- Zero liquid discharge achieved in 12 plants by 2023.
- Renewable energy share: 8% of total power needs in FY2023.
- SO2 emissions averaged 150 mg/Nm3 post-FGD in compliant plants.
- CSR spend on environment: PKR 2.5 billion by top firms in 2023.
- Clinker factor reduced to 0.72 from 0.78 in 5 years.
Environmental and Sustainability Interpretation
Pakistan's cement industry is trying to build a greener future, one blended bag at a time, but its 32-million-ton CO2e elephant in the room proves the foundation is still very much under construction.
Export and Import Data
- Pakistan cement exports to Afghanistan reached 5.2 million tons in FY2023, 57% of total exports.
- Total cement exports from Pakistan grew 22% to 9.1 million tons in FY2023.
- Cement exports value reached $450 million in FY2023, up from $380 million.
- Exports to USA were 0.8 million tons in FY2023 from southern ports.
- Bagged cement exports declined to 1.2 million tons in FY2023 due to bulk preference.
- Bulk cement exports surged 35% to 7.9 million tons in FY2023.
- Cement imports into Pakistan were negligible at 0.05 million tons in FY2023.
- Exports to Sri Lanka totaled 0.6 million tons in 1HFY2024.
- Average export price of Pakistani cement was $42 per ton in FY2023.
- China imported 1.1 million tons of Pakistani cement in FY2023.
- Export share from north ports (Karachi) was 45% or 4.1 million tons in FY2023.
- South ports handled 5 million tons cement exports in FY2023.
- Cement exports to Middle East countries were 0.9 million tons in FY2023.
- YoY export growth to Afghanistan was 18% at 5.2 MT in FY2023.
- Total export destinations for Pakistani cement: 25 countries in 2023.
- Clinker exports from Pakistan were 2.3 million tons in FY2023.
- Export revenue per ton averaged $49 for bagged cement in 2023.
- Imports of cement machinery worth $150 million in FY2023 for expansions.
Export and Import Data Interpretation
Pakistan's cement industry, in a bold display of one-sided diplomacy, has become Afghanistan's primary builder and its own best customer, cleverly shipping mountains of bulk powder north while barely importing a sprinkle itself, yet still managing to haggle a global average price that would make a bargain hunter blush.
Financial Performance
- Lucky Cement's domestic sales revenue was PKR 85 billion in FY2023.
- Total industry revenue from cement sales: PKR 650 billion in FY2023.
- Average profit per ton of cement sold: PKR 1,200 in FY2023.
- Bestway Cement's net profit surged 45% to PKR 12.5 billion in FY2023.
- DG Khan Cement reported EBITDA of PKR 28 billion in FY2023.
- Industry average gross margin: 32% in FY2023 due to cost controls.
- Fauji Cement's sales volume: 6.2 million tons, revenue PKR 45 billion.
- Cost of production per ton: PKR 8,500 in north, PKR 9,200 in south FY2023.
- Maple Leaf Cement net profit: PKR 4.2 billion, up 60% YoY.
- Cherat Cement's EPS rose to PKR 45 in FY2023.
- Kohat Cement revenue: PKR 22 billion from 3.5 MT sales.
- Industry debt-to-equity ratio averaged 0.45 in FY2023.
- Fuel cost share in production: 38% at PKR 3,200 per ton FY2023.
- Power cost per ton: PKR 2,100, contributing 25% to costs.
- Export revenue contribution: 25% of total industry revenue PKR 162B.
- Average dividend payout: 40% of profits across top 10 firms FY2023.
- Gharibwal Cement turnover: PKR 18 billion, profit PKR 3.1B.
- Industry capex on expansions: PKR 50 billion in FY2023.
Financial Performance Interpretation
Despite a rocky economic landscape, Pakistan's cement industry has cleverly cemented its fortunes, collectively pouring PKR 650 billion in revenue by mixing tight cost controls (32% gross margins) with strategic expansions, though a staggering 38% fuel cost slice per ton reveals the inflationary pressure bubbling just beneath the hardened surface.
Production Statistics
- In FY2023, Pakistan's cement production reached 47.8 million tons, marking a 6.5% increase from FY2022's 44.9 million tons due to enhanced capacity utilization.
- Local dispatches of cement in Pakistan for July 2023 stood at 3.78 million tons, up 14% YoY from 3.32 million tons in July 2022.
- Cement exports from Pakistan in FY2023 totaled 9.1 million tons, a 22% rise from 7.5 million tons in FY2022, driven by demand from Afghanistan.
- North region's cement production in Pakistan for 1Q FY2024 was 11.2 million tons, contributing 52% of national output.
- South region's cement production hit 10.5 million tons in FY2023, with a growth of 8.2% YoY.
- Pakistan's cement industry produced 4.2 million tons in December 2023, up 12% from December 2022's 3.75 million tons.
- Total cement production capacity utilization in Pakistan averaged 65% in FY2023.
- Clinker production in Pakistan reached 38.4 million tons in FY2023, supporting blended cement output.
- Monthly cement production in Pakistan for March 2024 was 4.1 million tons, a 10% increase YoY.
- Pakistan's white cement production was 0.45 million tons in FY2023, mainly from Bestway and DG Khan.
- Export-oriented cement production units in Pakistan produced 7.8 million tons in FY2023.
- Total cement production growth rate in Pakistan for FY2023 was 6.5%, reaching 47.8 MT.
- North-based plants produced 24.9 million tons of cement in FY2023, up 7% YoY.
- South-based cement production in 1HFY2024 was 10.8 million tons.
- Pakistan cement production dipped to 3.9 million tons in January 2024 due to seasonal factors.
- Annual cement production per plant in Pakistan averaged 2.1 million tons in FY2023.
- Blended cement production constituted 42% of total output at 20.1 million tons in FY2023.
- Ordinary Portland Cement (OPC) production was 27.7 million tons, 58% of total in FY2023.
- Pakistan's cement production index rose by 5.8% in FY2023 per PBS data.
- Record monthly production of 4.8 million tons achieved in June 2023.
Production Statistics Interpretation
Pakistan's cement industry is building a sturdy case for growth, laying a foundation of nearly 48 million tons, but it's still operating well below its potential, with a third of its capacity gathering dust.
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