Foreign direct investment in Pakistan's cement sector rises

Pakistan cement and construction industry have received a foreign direct investment (FDI) of US$516.07m during first eight months of FY17-18 (July 2017-February 2018), compared to US$190m received in corresponding months of last fiscal year. This translates a growth of 172 per cent YoY.

State Bank of Pakistan data reports that Pakistan's cement industry attracted FDI of US$39.8m and the construction industry US$476.90m, compared to US$25m and US$165m, respectively in July 2016-February 2017. The Pakistan government inclusive of all sectors has received a total FDI of US$2.44bn during this period.

The Pakistan cement sector has experienced growth particularly in the domestic market for the last three years. According to data released by All Pakistan Cement Manufacturers' Association (APCMA), this fiscal year cement dispatches have exceeded 30Mt in the eight months period (July 2017-February 2018). In two of these months, cement dispatches passed 4Mt. The total cement dispatches in the first eight months of this fiscal stood at 30.1Mt, compared with dispatches of 26.3Mt during the corresponding period of last year, an increase of almost 4Mt in eight months. Overall the sector grew by 14.3 per cent during this period.