The production and export of cement have substantially been increased during 2003-04 in Pakistan. During financial year 2003-04, production of cement was 13.06Mt - 20 percent higher as compared to last year.

About 1.1Mt of cement was exported to Afghanistan and Gulf countries during the last financial year. Iraq is also showing keen interest in importing cement from Pakistan.

Capacity utilisation of cement sector has also increased due to internal and external demand.

During last year cement sector capacity utilisation reached to 80 per cent, which is a good sign for the sector. Incentives announced in the budget 2004-05 for the construction sector will help increase demand of cement in the country