Cement sales continue to contract in Pakistan

Total cement dispatches in Pakistan dropped 6.8 per cent YoY to 3.01Mt in July from 3.23Mt a year earlier, according to the All Pakistan Cement Manufacturers Association (APCMA). Local dispatches contracted 11.4 per cent YoY to 2.46Mt from 2.776Mt in July 2023. Meanwhile, exports expanded 21.6 per cent YoY fell in July, coming in at 449,792t down from 547,162t in the equivalent period of the previous year.
 
North-south dispatches
Domestic dispatches from cement plants in the north of Pakistan shrank 11.1 per cent YoY to 2.09Mt in July 2024, down from 2.351Mt July 2023. Meanwhile, exports from north-based mills declined 18.8 per cent YoY to 98,920t, up from 121,814t in July 2023.
 
Domestic sales from cement plants in the south of the country fell 13.6 per cent YoY to 369,557t in July, down from 427,847t a year earlier, while exports per cent rose 36.7 per cent YoY to 448,242t, down from 327,977t a year ago.
 
Sales tax adding to industry pressures
A spokesperson from the APCMA noted that higher taxes and increased input costs are affecting the country's cement sector. The sales tax on a PKR120 (US$0.43)/bag of cement has doubled to PKR4000/t. The spokesperson added that this is the 11th straight month during which domestic dispatches are showing a declining trend due to sluggish economic activity in the country.