Cement production sees negligible growth in 7MFY23-24

According to the Pakistan Bureau of Statistics, Pakistan’s cement industry production during the first seven months of FY23-24 (July 2023-January 2024) stood at 24.24Mt, almost flat (0.05 per cent growth) compared to the previous year’s corresponding data. The obvious reason was the slowdown in the country’s construction industry due to the high cost of business. 

However, Johar Qandhari, president of the Korangi Association of Trade and Industry (KATI), expressed satisfaction over the recent uptick in production within the large-scale manufacturing sector. While acknowledging the positive impact of increased production on exports, particularly in the textile sector, he emphasised that Pakistan’s production costs remain significantly higher than those of neighbouring countries. He underscored the urgent need for cost-reduction measures to sustain and bolster industrial activities.

Mr Qandhari pointed out that the industrial sector faces challenges from escalating electricity and gas prices, which are exacerbating operational difficulties for businesses. Expressing apprehension, he raised concerns over the International Monetary Fund’s (IMF) proposal for further hikes in gas prices.

Asserting the vital role of industrialisation and exports in fostering economic development, Qandhari stressed the imperative of lowering production costs and interest rates. He urged the government to engage in dialogue with industrialists to promptly address the issue of electricity and gas prices, thereby facilitating economic stability for Pakistan.