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Pakistan’s cement exports fall by 43%

Pakistan's economy is on a downward spiral and cement sales have confirmed it. Exports must not fall if the country has to survive the financial crisis.

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On July 4, the All Pakistan Cement Manufacturers Association (APCMA) released data covering 12 months of domestic and international dispatch. Total cement dispatches in FY21-22 (July 2021–June 2022) were 52.89 Mt, 7.9 % less than the 57.43 Mt sent in the prior fiscal year. Domestic consumption decreased by 1% to 47.63 Mt from 48.11 Mt during this time, while exports fell by 43.6% to 5.25 Mt from 9.31 Mt in FY20-21.

In a briefing, DG Khan Cement Co. stated that this year’s local growth was flat as a result of conflicting policies and the domestic political climate. At the same time, exports fell as a result of the shortage of coal as coal prices shot up.

Furthermore, the management predicted that growth will be negative or single digits in the upcoming year due to budgetary restrictions (the government tax of 10% one-time fee in budget FY22-23). Cement prices will also rise as a result of the ongoing rise in domestic fuel costs. As a result of the high cost of steel and cement, several projects have been placed on hold.

Read more: Pakistan Cement: Highest ever sales for FY21

Uncertainty in government policy and historically high prices for fuel, power, coal, and other raw materials, according to the APCMA, are to blame for the performance. The high cost of production will cause cement prices to rise further on the local market. An official encouraged the government to develop a strategy to support Pakistan’s cement industry’s exports.

According to the dispatch split, northern-based mills shipped 39.44Mt of cement domestically during the FY21–22, which is 2.8% less than the 40.58Mt shipped during the FY20–21. From FY21–22 to FY21–22, the north’s exports decreased by 64.5% to 910,685t, compared to 2.56Mt exported in the prior fiscal year.

Read more: Cement sector records robust growth of 40.41%

Domestic shipments by southern-based mills in FY21–22 totaled 8.19 Mt, up 8.7% from 7.53 Mt of cement in the prior fiscal year. However, exports from the southern zone had a significant reduction of about 35.6%, falling from 6.74Mt in the fiscal year to 4.34Mt in FY21-22.

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