Cement Prices Rise Again in Northern Region
Cement prices in Pakistan’s northern region have increased once again, adding further pressure on the construction sector. According to market sources and brokerage reports, prices have gone up by Rs. 25 per bag, pushing the average retail rate to around Rs. 1,430 per bag. This latest cement price hike in Pakistan comes shortly after an earlier increase in late January 2026, indicating a steady upward trend in building material costs.
The rise in cement prices 2026 is being attributed to higher production costs, increased transportation expenses, and stable demand from ongoing infrastructure and housing projects. The northern region cement rate is particularly important because it covers major cities including Lahore, Islamabad, Rawalpindi, Peshawar, and surrounding areas where construction activity remains significant.
In this detailed guide, we will explain why cement prices are rising, how this impacts construction costs in Pakistan, what the latest cement dispatch data shows, and what experts expect in the coming months.
Latest Cement Price in Northern Region – February 2026
As of February 2026, the average cement price in the northern region stands at approximately Rs. 1,430 per bag. The Rs. 25 per bag increase follows a previous adjustment made at the end of January.
This gradual rise suggests that manufacturers are adjusting prices in phases instead of implementing one large increase. Market analysts believe that cement companies are trying to balance cost recovery while avoiding a sudden drop in demand.
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The current rate may vary slightly depending on city, brand, and dealer margin.
Why Are Cement Prices Increasing in Pakistan?
Several factors are contributing to the latest cement price hike in northern Pakistan.
1. Higher Production Costs
Cement manufacturing depends heavily on energy. Rising electricity tariffs, fuel prices, and coal costs have increased production expenses. Many plants use imported coal, and fluctuations in global prices also impact local manufacturing costs.
Manufacturers are now passing these additional expenses on to consumers.
2. Increased Transportation Charges
Transportation costs have also increased due to higher diesel prices. Cement is bulky and heavy, making transport a major component of final pricing. With fuel adjustments continuing in 2026, delivery charges have gone up.
3. Steady Infrastructure Demand
Despite economic challenges, infrastructure and development projects continue in northern Pakistan. Government-backed projects, housing schemes, and private construction are supporting stable cement demand.
Even moderate demand combined with rising costs can push prices upward.
4. Export Growth
Data from the All Pakistan Cement Manufacturers Association shows that exports have significantly increased. Cement dispatches rose by 12.54 percent year-on-year in January 2026. Total dispatches reached 4.538 million tonnes compared to 4.032 million tonnes in January last year.
Exports played a major role in this growth. When exports increase, local supply tightens slightly, which can support higher domestic pricing.
Cement Dispatch Data – What It Means
According to industry figures, cement dispatches in January 2026 showed strong year-on-year improvement.
Total dispatches: 4.538 million tonnes
Previous year (January): 4.032 million tonnes
Growth: 12.54 percent
This increase is largely driven by export demand rather than strong domestic growth. While local construction activity is steady, exports are helping the sector maintain profitability.
This shift indicates that cement manufacturers are increasingly relying on overseas markets to stabilize revenues.
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These statistics are important for investors, contractors, and policymakers.
Impact on Construction Costs in Pakistan
The cement price increase directly affects construction cost per square foot in Pakistan.
Cement is a basic material used in foundations, columns, beams, plaster, and flooring. Even a Rs. 25 increase per bag can significantly impact large-scale projects.
For example:
A medium-sized house may require hundreds of cement bags.
Large commercial projects require thousands of bags.
With cement prices rising, developers may:
Increase property prices
Slow down new project launches
Adjust budgets
Pass costs to buyers
This also affects housing affordability, especially in cities like Islamabad, Rawalpindi, and Lahore.
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The ripple effect of cement price hikes extends beyond contractors to home buyers.
Northern Region vs Southern Region Cement Rates
Cement prices can vary between northern and southern regions.
Northern region prices are typically slightly higher due to higher demand concentration and transportation factors. The southern region, including Karachi and surrounding areas, sometimes sees different price trends depending on port access and export routes.
Market analysts track regional differences carefully because they reflect supply-demand imbalances.
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Regional comparisons help buyers find competitive rates.
Role of Exports in Cement Pricing
Exports are becoming a key factor in Pakistan’s cement industry performance.
With improved export volumes, companies can:
Increase plant utilization
Improve cash flow
Support price stability
Offset weak domestic demand
However, strong exports may slightly reduce local supply availability, indirectly supporting domestic price increases.
The January 2026 dispatch data suggests that overseas markets are currently providing relief to manufacturers.
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The balance between exports and local demand will determine future pricing trends.
Market Outlook for Cement Prices 2026
Industry experts expect cement prices to remain firm in the near term due to:
High energy costs
Ongoing infrastructure projects
Steady export momentum
Transportation expenses
However, large sudden increases are unlikely unless fuel or electricity prices rise sharply again.
If domestic demand weakens significantly, manufacturers may slow price increases to maintain sales volumes.
Consumers and contractors should monitor:
Fuel price updates
Electricity tariff changes
APCMA dispatch reports
Government infrastructure announcements
These indicators directly influence cement market trends.
Effect on Real Estate and Housing Sector
The real estate sector closely watches cement prices.
Higher cement rates can:
Increase overall project cost
Raise apartment and housing prices
Delay low-budget housing projects
Reduce profit margins for developers
For small builders and individual home owners, even minor increases matter.
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Cement remains one of the most sensitive indicators of construction inflation.
What Should Buyers Do?
If you are planning construction, consider the following steps:
Monitor weekly cement rate updates
Compare dealer prices
Buy in bulk if prices are stable
Plan construction schedule wisely
Since prices are rising gradually, locking in supply early may help control budget risk.
Conclusion
The latest Rs. 25 per bag increase in cement prices in Pakistan’s northern region reflects rising production and transportation costs along with steady demand and stronger exports. The average rate now stands at around Rs. 1,430 per bag in February 2026.
While the increase may seem small, its cumulative effect on large construction projects can be significant. With cement dispatches rising and export growth supporting industry performance, prices are likely to remain firm in the short term.
Home builders, developers, and investors should closely follow cement price updates 2026, APCMA reports, and energy cost changes to better plan their projects and budgets.
