Increased export revenue MoM and YoY for Pakistan producers in 3MFY19

According to the Federal Bureau of Statistics, Pakistan's cement industry earned foreign exchange revenue of US$29.05m by exporting 671,913t of cement during September compared to US$27.57m on 617,745t of cement in previous month. This represents a MoM growth of 5.4 per cent and 8.8 per cent in terms of value and quantity, respectively.

Compared to September 2017, earnings of US$17.76m on 359,766t of cement, it translates to a growth of 63.5 per cent in earning of foreign currency and 86.8 per cent YoY in quantity.

On cumulative basis, export revenue during the first three months of July-September 2018, surged by 23.7 per cent to US$77.58m, exporting 1.76Mt of cement, compared to US$62.70m from exporting 1.23Mt in July-September 2017. The growth in Pakistani rupees stood at 45.7 per cent to PKR9.6bn during this period, but value in dollar terms fell from US$50.92/t to US$53.96/t in the first three months of current fiscal year.

As per data of All Pakistan Cement Manufacturers Association (APCMA), cement exports from Pakistan to Afghanistan and India recorded a fall of 25.6 per cent and 12.4 per cent to 489,915t and 242,055t, respectively during first three months of the current financial year. However, cement exports to rest of the world rose by over 200 per cent to about 1.058Mt during this period.

According to a local research house, following the PKR depreciation in the country, cement players in Pakistan are not only exporting surplus quantities but also getting better prices of US$44t. Moreover, re-imposition of US sanctions on Iran could restrict its cement exports (12Mt in FY18) going forward, allowing Pakistan to have a bigger share in the region.