Karachi: Cement offtakes in Pakistan grew by 13 percent year-over-year to 4.2 million tons in February 2026, driven by a substantial 38 percent increase in export dispatches. Despite concerns over geopolitical instability in the Middle East, the impact on the cement industry appears limited, as local demand and export activities continue to bolster the sector.
According to AKD Securities Limited, the recent rise in cement prices in the northern regions of Pakistan reflects an improving demand environment, which is anticipated to enhance gross margins for companies involved in cement production. The report indicates that, although the ongoing Middle East conflict poses a risk, the potential impact is mitigated by stable coal prices due to rising local supplies in major coal-importing nations. Additionally, the ability of companies to pass on costs further supports the industry's resilience.
The report from AKD Securities Limited identifies LUCK, FCCL, and DGKC as top investment picks, with target prices for December 2026 set at PKR 731 per share, PKR 88 per share, and PKR 389 per share, respectively. These projections suggest confidence in the continued strength of Pakistan’s cement sector despite the external challenges.
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