Cement production falls on MoM and YoY basis during 6MFY19

Pakistan Bureau of Statistics (PBS) has released numbers of quantum index of the Large Scale Manufacturing Industries (LSMI) for 6MFY18-19. The overall output of LSMI fell by 1.5 per cent for July-December 2018 compared to July-December 2017. Similarly, the LSMI output decreased by 10.2 per cent for December 2018 compared to December 2017 and increased by 2.5 per cent if compared to November 2018.
 
Production in July-December 2018 as compared to July-December 2017 has significantly decreased in pharmaceuticals, petcoke and petroleum products, iron and steel products and electronics while it has increased in fertilisers and electronics. Cement output also fell during this period.
 
Pakistan's cement industry recorded a contraction of 1.6 per cent during first six months of FY18-19, between July and December 2018, as production fell from 20.128Mt of cement to 19.806Mt, apparently due to lack of local demand and other issues, reports PBS. While, in December 2018, cement production decreased by 6.7 per cent to 3.226Mt from 3.459Mt in December 2017.
 
According to experts, the new government is pursuing stabilisation efforts that have led to monetary tightening and currency depreciation. After cutting the PSDP expenditure, the releases have been slow. Private sector construction is not breaking any ceilings either.