Karachi: Cement dispatches in Pakistan for March 2025 saw a decline, attributed to the Eid holiday, with figures recording at 3.57 million tons, marking a 9% year-on-year decrease. Local dispatches fell by 11%, although export figures showed a modest increase of 1% year-on-year.
In a recent analysis by AKD Securities Limited, the sector is expected to find pricing stability as royalty rates in Khyber Pakhtunkhwa align with those in Punjab. This development is anticipated to bring harmony to the regional pricing structure.
Despite the U.S. imposing tariffs, the report suggests that the impact on Pakistani cement exports will be minimal due to the sector’s limited exposure to the U.S. market. Concurrently, international coal prices are projected to face pressures from global recessionary concerns, potentially benefiting cement producers.
The report identifies Lucky Cement (LUCK) and Fauji Cement Company Limited (FCCL) as top picks within the sector, with target prices set at PKR 1,965 per share and PKR 61 per share, respectively, by December 2025.
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