Positive outlook for Pakistan producers

The government of Pakistan said yesterday it expects the domestic cement industry to prosper during fiscal FY14-15, led by improvements in local pricing and demand.

According to the Pakistan Economic Survey 2012-13 released yesterday, due to improving cement prices this year, the outlook for most cement players is positive for the next fiscal which begins in July 2014.

Local cement dispatches are also expected to increase due to improvements in Public Sector Development government expenditure this year and an expected election-led boost in infrastructural spending.

However, exports will continue to be challenge, though devaluation of the rupee and local manufacturer’s efforts to increase prices in Afghanistan will be of some help.

Pakistan cement is exported to Afghanistan, South Africa, Iraq, India, Sri Lanka, Tanzania, Djibouti, Mozambique, Sudan and Kenya. In the first nine months of the current fiscal July 2013 -March 2014, country exported over 7Mt of cement.