Pakistan cement exports to India are likely to be affected following the Indian government's announcement to scrap the 'Most-Favoured Nation' status to Pakistan, after an attack on Indian forces in Pulwama, Jammu and Kashmir, India, recently.
 
According to Al Habib Capital Markets, Pakistan's cement exports are expected to suffer most due to this unwanted tension between India and Pakistan. During 7MFY19 Pakistan's total cement exports stood at ~2.876Mt, up four per cent, YoY, of which cement exports to India amounted to 648,110t (market share in exports ~22.5 per cent) down 4.6 per cent, YoY. Pakistan’s total clinker exports reached at ~1.264Mt during this period, of which some were exported to India.
 
Data released by All Pakistan Cement Manufacturers Association (APCMA) reveals that during FY18, Pakistan's cement exports to India stood at ~1.212Mt against total cement exports of 4.746Mt (market share ~25.55 per cent). There were no clinker exports in FY18.
 
Based on 7MFY19 cement export data, analysts say that Cherat Cement, Bestway Cement Ltd, Maple Leaf Cement, Attock Cement, DG Khan Cement and Lucky Cement are expected to be negatively impacted as a result of this decision of the Indian government with Maple Leaf Cement and DG Khan Cement bearing the brunt of this move.
 
The MFN status is accorded under World Trade Organisation's (WTO) General Agreement on Tariffs and Trade. Both India and Pakistan are signatories to this and are members of the WTO. However, Pakistan is yet to grant MFN to India.