Pakistan: growth in local cement consumption unabated

Pakistan's cement industry dispatches to domestic markets during May 2017 stood at 3.399Mt compared to 3.065Mt during same month last year.

The home market shows a healthy increase of 10.90 per cent on YoY basis. However, exports during May 2017 were 0.309Mt, against 0.558Mt during May 2016, showing a reduction of 44.58 per cent. Total dispatches (local and export) during May 2017 were 3.708Mt, compared to 3.623Mt during same month last year, showing an increase of 2.36 per cent.

On cumulative basis, during the last 11 months (July 2016 to May 2017), domestic cement consumption has increased by 10.76 per cent to 37.589Mt, against 35.523Mt of corresponding period last year. But cement exports declined by 21.27 per cent to only 4.319Mt, during the same period, compared with 5.486Mt for the corresponding period last year.

All Pakistan Cement Manufacturers Association (APCMA), in statement regretted that the government slapped undue additional taxes on cement in federal budget 2017-18. This increase may hurt the growth of the industry that has been posting healthy growth during last 18 months.