Pakistan's cement industry saw significant export growth in 2MFY23-24

Pakistan's cement industry saw significant growth in cement exports, both over land to Kabul and further afield by sea during 2MFY23-24 due to the depreciation of the Pakistani rupee and the falling prices of Afghan and local coal.

According to AKD Securities Ltd, cement exports are expected to show growth going forward, driven by the viability of export prices, particularly in light of declining coal prices. IMS Research also believes that exports continue to demonstrate robust growth, primarily driven by southern producers actively exploring export markets to maintain higher utilisation levels. Additionally, the depreciation of the Pakistani currency is expected to make exports more economically viable.

Pakistan’s cement and clinker exports increased by around 130.2 per cent in the 2MFY23-24 to US$39.641m (981,395t) compared to US$17.217m (329,157t) in the 2MFY22-23, the Pakistan Bureau of Statistics (PBS) said. In terms of volumes, exports increased by 198.2 per cent YoY in the same period. The export revenue, if calculated in Pakistani rupees, saw a significant growth of 201.5 per cent to PKR11.44bn (US$38.6m) during this export period, supported by the depreciation of the local currency against the US dollar.

The data on exports and imports released by PBS revealed that on a MoM basis, cement and clinker exports registered 45.5 per cent growth in terms of value in August 2023 to US$23.49m (569,376t) compared to US$16.14m (412,020t) in July 2023. In terms of dispatch volumes, the YoY increase was 38.9 per cent.

YoY cement exports rose by 102.7 per cent in August 2023 compared to US$11.58m (224,016t) in August 2022.

The country’s total exports in the 2MFY23-24 were US$4.434bn (provisional) against US$4.733bn during the corresponding period of last year, showing a decrease of 6.3 per cent. Total exports in August 2023 were US$2.366bn (provisional) compared to US$2.068bn in July 2023, showing an increase of 14.4 per cent but a decrease of 4.7 per cent compared to US$2.483bn in August 2022.