Topline Securities has stated that Pakistan’s cement sales were affected in May 2022 mainly due to the Eid holidays and economic slowdown. The attrition in exports is on the back of disruption in the global supply chain, resulting in higher sea freight charges. The All Pakistan Cement Manufacturers Association (APCMA) remarked that the continuous downfall of the rupee coupled with the skyrocketing prices of coal, electricity and petroleum products is badly affecting the business momentum.
According to the data released by the APCMA, total local/overseas cement dispatches during May 2022 declined by 15.9 per cent to 3.32Mt against 3.94Mt dispatched during the same month of last fiscal year. The breakdown shows local were 3.15Mt compared to 3.2Mt in May 2021, showing a reduction of 1.6 per cent. However, export dispatches suffered a massive decline of 77 per cent as the volumes reduced from 746,550t in May 2021 to 171,915t in May 2022.
Cumulative dispatches
During the first 11 months of the current fiscal year (July-May 2022), total cement dispatches (domestic and exports) were 47.62Mt, 8.8 per cent lower than 52.22Mt dispatched during the corresponding fiscal year. Further analysis indicates that domestic uptake declined by 1.8 per cent to 42.65Mt from 43.45Mt during July-May 2021. In contrast, exports during the same period declined by a considerable 43.3 per cent to 4.97Mt from 8.77Mt during July-May 2021.
APCMA is pining hope that in the forthcoming federal budget on 10 June, the government will relieve the industry by reducing duties and taxes and focussing on Ministry of Planning, Development and Special Initiatives (PSDP) and China-Pakistan Economic Corridor (CPEC) projects, which may help kickstart the industry’s revival in the next fiscal year.
