Pakistan: good FY14 with positive outlook for FY15

Domestic cement sales in the last month of FY14 jumped 14.32 per cent to 2.53Mt compared to 2.21Mt during June 2013. Exports were also up, although at a more modest rate of 2.9 per cent, reaching 685,000t, according to the All Pakistan Cement Manufacturers Association.

For the full-year, cement sales in Pakistan increased 4.32 per cent to 26.14Mt from 25.06Mt the previous year. Exports declined 2.87 per cent YoY from 8.37Mt to 8.133Mt. However, with total sales rising from 33.432Mt to 34.27Mt, FY14 has proven to be a good year for Pakistani cement producers. 

This positive trend is expected to continue in FY15, according to the industry and analysts. “The increase of 2.5 per cent in cement sales is a healthy growth and it will further rise in the next 12 months. I think demand will touch 35.5Mt in 2014-15, recording a jump of 3.6 per cent,” said Saad Hashmi, analyst at Standard Capital Securities.

The gradually-improving economy and growing construction activities, following the higher allocation by the Pakistani government for the Public Sector Development Programme are viewed as the main drivers over the next year.