Capacity on the increase in Pakistan

Cement production capacity in Pakistan increased by 52 per cent in last decade. According to the All Pakistan Cement Manufacturers Association (APCMA), capacity has risen from 30.50Mt in 2006-07 to 46.39Mt in 2016-17. The trend continues in current fiscal year as well and further advanced to 49.44Mt in first nine months of 2017-18.
 
According to a local research house, Attock Cement Pakistan Ltd (ACPL) and Lucky Cement have increased capacities by 1.2-1.3Mta in 2QFY18. As a result, the combined cement capacity in the south has advanced by approximately 30 per cent to 11Mta from 8.5Mta. Furthermore, once D G Khan Cement's (DGKC) additional capacity comes online in 4QFY18, the capacity in the region will rise by a cumulative 62 per cent to 13Mta from 8.5Mta.

However, an analyst predicted that increasing capacity would affect capacity utilisation and price competition in the south.