KARACHI: Urea sales surged to an all-time high in December 2025, while cement and oil demand also posted notable gains, signalling a gradual revival in key sectors of the economy amid improving market sentiment.
According to industry data, urea sales jumped 65 per cent month-on-month and 37 per cent year-on-year to reach a record 1.356 million tonnes in December. The sharp increase was largely attributed to aggressive sales campaigns by fertiliser companies and dealers, who offered higher discounts to clear inventories.
Total urea offtake during calendar year 2025 stood at 6.73 million tonnes, marking a modest two per cent increase compared to 6.57m tonnes in 2024. Asad Ali of Topline Securities said Engro Fertiliser maintained discounts of around Rs400 per bag during December, although these were reduced to Rs150 per bag at the start of the new year. Fauji Fertiliser also offered discounts ranging between Rs150 and Rs200 per bag over the same period. As a result, closing urea inventories declined sharply to about 0.315m tonnes in December from 1.13m tonnes in November.
In contrast, diammonium phosphate (DAP) sales remained subdued. DAP offtake in December was recorded at 80,000 tonnes, down 67 per cent month-on-month and 42 per cent year-on-year. Total DAP sales in 2025 were estimated at 1.3m tonnes, reflecting an 18pc decline compared to the previous year, while closing inventory stood at around 219,000 tonnes.
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The cement sector also showed signs of recovery during the first half of FY26. According to the All Pakistan Cement Manufacturers Association, cement sales rose 13.11pc to 21.152m tonnes in July-December FY26 compared to 18.7m tonnes in the same period last year, indicating a pick-up in construction activity. However, exports declined by four per cent to 4.631m tonnes during the period. Overall cement despatches, including exports, rose 9.67pc to 25.783m tonnes.
In December alone, local cement despatches increased by 6.42pc year-on-year to 3.725m tonnes, while exports fell sharply by 21pc. Despite this, total cement shipments posted a modest 1.47pc rise compared to December 2024.
Oil demand also recorded mixed trends. Oil sales in December stood at 1.35m tonnes, up six per cent year-on-year but down five per cent month-on-month. Analysts attributed the annual increase to economic recovery, easing inflation and improved control over smuggling, while the monthly decline was linked to a 10-day transporters’ strike. During the first half of FY26, oil sales rose two per cent to 8.2m tonnes.
Market analysts expect oil demand to grow between seven and 10pc in FY26, supported by improving economic activity, though challenges related to energy pricing and fiscal pressures remain.
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