The output of Pakistan's large-scale manufacturing industries (LSMIs), including cement production, witnessed an increase of 14.5 per cent YoY in November 2020, and of 7.4 per cent YoY in 5MFY20-21, according to Pakistan's Federal Bureau of Statistics.
Pakistani cement production increased by 21.3 per cent YoY to 20.442Mt in July-November 2020 from 16.852Mt in the same period last year. The rising trend was also witnessed in November 2020, when production significantly rose by 13 per cent to 4.009Mt versus 3.549Mt in November 2019.
Research house IMS Research sees strong demand from housing projects amid low-interest rates and amnesty for builders as main drivers of future cement market growth. It expects that local demand will be sustained in the coming quarters as the government’s infrastructure spending will also rise to kick off low-cost housing projects. Besides this, cement demand in the south has improved considerably compared to previous quarters, despite a decline in exports. This was mainly because of reduced selling from northern-based producers in the southern market and higher demand from the private sector.
