Pakistan sales seen rising 8% in FY15 on higher domestic demand

Pakistan cement sales are expected to rise by six per cent in the first eight months of the current fiscal, The Express Tribune reported citing provisional data compiled by Topline Securities.

However, monthly cement sales are expected to decline three per cent in February to 2.8Mt compared to the month before due to the fewer number of days. However, on an annual basis the figure would translate to 2.6 per growth.

Cement exports to Afghanistan, Pakistan’s largest export market, have remained under pressure. However, an increase in domestic demand has more than offset the decline in exports.

“We expect exports to Afghanistan to remain on the lower side while aggressive development spending by the government before the end of the year will support growth in local dispatches,” the report added.

Total sales are expected to come in at 23Mt compared to 21.6Mt in the comparative period of the previous fiscal. Domestic cement sales are expected to have reached 17.8Mt, up 9.4 per cent YoY. Exports are likely to be 5Mt, 5.5 per cent YoY.