Pakistan’s full-year domestic dispatches rise 8.84%

Pakistan has closed fiscal year 2011-12 (FY11-12) with an 8.84 per cent YoY rise in local dispatches, however exports for the year have seen their third successive year of decline and capacity utilisation remains under pressure.

Domestic dispatches for the fiscal year, which ended on 30 June 2012, reached  a record 23.947Mt, data from the All Pakistan Cement Manufacturers Association (APCMA) shows.

However, exports declined by 9.12 per cent to 8.568Mt, marking the third consecutive year of contraction. Exports have now fallen by 20.4 per cent from a peak of 10.852Mt in FY08-09.

A spokesperson for the APCMA told The Nation newspaper that during the fiscal year, the sector added 3Mt. This increases the country’s total installed capacity by 7.23 per cent to 44.217Mt from 42.235Mt in the previous fiscal.

However, he noted that capacity utilisation remains under pressure due to sluggish export demand as well as a lack of investment in the domestic housing sector and a lack of mega projects.

In terms of various export markets, the spokesperson said talks of increased trading with India have failed to materialise and volumes only reached 0.605Mt, well below market expectations. Exports to Afghanistan, however, have remained stable and accounted for 4.715Mt of Pakistan’s export volumes in FY11-12. Exports to other destinations via sea (excluding India) declined to 3.247Mt, a reduction of 17 per cent.