The State Bank of Pakistan has released its second quarterly report on The State of Pakistan’s Economy for FY19. As stated by the report, the effects of macroeconomic stabilisation measures, taken since December 2017, started to unfold as the economy moved into the second quarter of FY19. The report covered the performance of cement in terms of local and export sales.
In line with other construction-allied industries, cement production declined by 1.6 per cent in 1H-FY19, compared to an expansion of 10.3 per cent during same period last year. However, All Pakistan Cement Manufacturers Association (APCMA) data for 1HFY19 shows a growth of 3.9 per cent in cement sales, largely driven by clinker exports. Cement exports grew 32.4 per cent to US$157m during 1H-FY19, supported by a 55.5 per cent growth in shipments.
In the wake of significant capacity additions and faced with declining domestic sales during 1H-FY19, producers ventured into new export markets, with encouraging results. The depreciation of the local currency also supported the export recovery by making cement exports more competitive. Producers shipped volumes to Sri Lanka, South Africa, Madagascar and Mozambique. However, exporters are facing a challenging external environment with declining unit prices.
