The State Bank of Pakistan (SBP) released its annual report on the State of Pakistan’s Economy for the fiscal year 2022-23 on 23 October. In a brief review report on cement, the central bank stated that in line with subdued construction activity, cement production declined sharply by 13.7 per cent during FY23, compared to a 3.6 per cent drop in FY22.
Furthermore, cement exports declined due to the economic slowdown in destination countries such as Sri Lanka, China and Bangladesh. Moreover, issues with the availability of higher imported coal prices and delays in implementing rehabilitation projects in the flood-affected areas also dented production.
Exports
Cement and clinker exports registered a 15.2 per cent decline in FY23 due to lower shipments, particularly to China and Bangladesh. This volumetric decline could be attributed to weak demand in China amid a slowdown in construction activity.
