Pakistan cement production remains flat in July 2019

The data of large-scale manufacturing industries (LSMI) shows a negative trend in Pakistan's manufacturing sector in July 2019, including cement industry, says Pakistan Federal Bureau of Statistics.

The LSMI output decreased by 3.3 per cent for July 2019 compared to July 2018 and increased by just under one per cent per cent when compared to June 2019. The production in July 2109 as compared to July 2018 has increased in fertilisers and electronics while it has significantly decreased in food, beverages and tobacco, coke and petroleum products, pharmaceuticals, automobiles, and iron and steel products.

As a result, cement production slightly fell by 0.3 per cent to 3.110Mt from 3.114Mt during this period – a trend that has been attributed to the country's economic slowdown.

FDI in cement/construction sectors
Pakistan received net foreign direct investment (FDI) of US$156.7m in July and August 2019, compared to US$376.9m received in July 2018. This represents a fall of 58.5 per cent YoY and the drop in FDI also affected investment in the construction and cement sectors in the country, according to a report of the State Bank of Pakistan.

The breakdown shows cement attracted investment of US$8.2m and the construction sector US$1.4m, compared to US$8.1m and US$105.7m, respectively in July/August 2018. Therefore, the Pakistani government is continuing its efforts to attract sufficient FDI in the remaining months of the financial year.