Abdul Rafay Siddiqui
KARACHI: The latest dispatch data for Pakistan’s cement industry reveal a mixed performance for July 2024, with a notable decline in local sales but a significant increase in exports. The overall dispatches of cement saw a decrease of 6.81 percent, totaling 3.010 million metric tons compared to 3.230 million metric tons in July 2023.
According to the All-Pakistan Cement Manufacturers Association (APCMA), local dispatches fell to 2.463 million metric tons, marking an 11.41 percent drop from the previous year. This decline continues a trend of reduced domestic dispatches, which have been falling for 11 consecutive months. The APCMA attributes this downturn to the combined effects of higher taxes and rising input costs, which have strained the industry and impacted its ability to maintain local sales volumes.
In contrast to the decline in local dispatches, the industry experienced a significant boost in export dispatches. Exports surged by 21.65 percent, signaling a positive development and potential growth opportunities in international markets. This growth in exports underscores the resilience of the cement sector amid challenging domestic conditions. The APCMA has called for a review of the government’s taxation policies, emphasizing the need for reforms to mitigate the impact of heavy taxes on the cement industry.
The association argues that such a review is crucial for supporting the sector and ensuring its continued contribution to the economy. As the cement industry navigates these mixed results, the combination of declining local sales and growing export activity highlights both the challenges and opportunities facing the sector in the current financial year.
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