Why Pakistan’s Cement Exports to Afghanistan Dropped — And How Iran Stepped In

If you’ve been wondering why Pakistan’s cement exports to Afghanistan suddenly dropped, you’re not alone. Many people in the construction and export industries are confused about what’s going on. Let’s break the story down in simple, conversational English so anyone can understand it.

The issue began when political tension and border clashes between Pakistan’s forces and the Afghan Taliban increased. Because of this, trade routes between the two countries remained closed for weeks. Pakistan expected that this closure would badly hurt Afghanistan’s economy. But surprising reports from the Afghan Finance Ministry and the World Bank say something different: Afghanistan didn’t suffer as much as expected.

Why? Because Afghanistan quickly started buying more cement and other goods from Iran and Central Asian countries, reducing its reliance on Pakistan.

But that doesn’t mean everything stayed normal. According to people living in different Afghan provinces, cement prices inside Afghanistan have almost doubled. This happened because local demand for cement has been rising for years. Since the Taliban took over in 2021, security improved, and construction of roads, bridges, housing, and public projects grew rapidly. With more development, Afghanistan’s need for cement has become bigger than ever.

The World Bank reported that Afghanistan’s industrial sector grew because of a 15% boost in the construction industry — especially in Kabul, where population and housing demand are rising. Many Afghans, due to a weak economy and limited banking options, also prefer investing in property instead of keeping cash. This increases construction activity and cement demand.

Pakistan has always been a major cement supplier to Afghanistan. Every year, Afghanistan needs around 5 to 7 million tons of cement, and Pakistan used to supply almost 18% of that. In the last financial year, Pakistan exported nearly 1.68 million tons of cement to Afghanistan. Some major companies exporting cement included Lucky Cement, Bestway Cement, Fauji Cement, and Cherat Cement.

But everything changed when the border closed. Pakistan used to export 150,000 to 200,000 tons of cement monthly. In July 2025, exports even jumped by 138% compared to the previous year. But after the trade suspension in October, Pakistan’s cement exports dropped sharply.

So, who filled the gap?
Iran.

Iran is one of the world’s largest cement producers, making around 88 million tons a year. It has also developed railway links with Afghanistan, making transportation faster and cheaper. Afghan officials confirmed that Iran exported around 1.7 million tons of cement this year — even more than Pakistan.

The price difference also matters. Pakistan exported 1.6 million tons of cement worth $151 million, while Iran exported 1.7 million tons worth $124 million. That means Iranian cement is cheaper, which makes it even more attractive to Afghan buyers.

Other countries like Uzbekistan, Tajikistan, and Turkmenistan are also exporting cement to Afghanistan. With new railway routes connecting these countries to Afghan cities, their role in the Afghan market is increasing.

So, is Pakistan losing its place in the Afghan market?
For now — yes. As long as borders stay closed and logistics remain uncertain, Afghanistan will continue to depend more on Iran and Central Asian suppliers. Cement exports were a major business for Pakistan, and losing this share is a clear setback for the industry.

But if political issues settle and trade routes reopen, Pakistan may recover some of its lost market — especially because Afghan builders have relied on Pakistani cement for decades.