The unprecedented and extremely high tax measures leading to a huge increase in prices have led to a steep decline in demand of cement in Pakistan.
Cement dispatches declined by 25.68 per cent in August 2024. Total cement dispatches during August 2024 were 3.366 million tons as against 4.528 million tons during the same month of last fiscal year.
According to the data released by the All Pakistan Cement Manufacturers Association, local cement dispatches during August 2024 were 2.752 million tons as compared to 3.798 million tons in August 2023, showing a decline of 27.54pc.
Exports also declined by 16pc as the volumes reduced from 730,755 tons in August 2023 to 613,857 tons in August 2024.
In August 2024, north based mills dispatched 2.53 million tons cement showing a decline of 22.2pc against 3.252 million tons in August 2023. South based mills dispatched 835,245 tons cement during August 2024 that was also 34.54pc less compared to 1.276 million tons during August 2023.
North based mills dispatched 2.325 million tons cement in domestic markets in August 2024, showing a decline of 24.7pc against 3.088 million tons in August 2023. South based mills dispatched 426,289 tons cement in local markets during August 2024 that was 39.91pc less compared to 709,443 during August 2023.
Exports from north based mills increased by 24.79pc as the quantities enhanced from 164,195 tons in August 2023 to 204,901 tons in August 2024. Exports from south, however, reduced by 27.82pc to 408,956 tons in August 2024 from 566,560 tons during the same month last year.
During the first two months of current fiscal year, total cement dispatches (domestic and exports) were 6.375 million tons that is 17.82pc lower than 7.758 million tons during the corresponding period of last fiscal year. Domestic dispatches during this period were 5.214 million tons against 6.578 million tons during same period last year, showing a reduction of 20.73pc.
Exports were also 1.65pc less as the volumes reduced to 1.161 million tons during the first two months of current fiscal year compared to 1.181 million tons during same period of last fiscal year.
North based mills dispatched 4.418 million tons cement domestically during the first two months of current fiscal year, showing a reduction of 18.78pc than 5.440 million tons during July-August 2023. Exports from north increased by 6.23pc to 303,821 tons during July-August 2024 compared with 286,009 tons during the same period last year.
Total dispatches by north based mills reduced by 17.53pc to 4.722 million tons during first two months of current financial year from 5.726 million tons during same period of last financial year.
Domestic dispatches by south based mills during July-August 2024 were 795,846 tons showing reduction of 30.02pc over 1.137 million tons during the same period of last fiscal year. Exports from south also declined by 4.17pc to 857,198 tons during July-August 2024 compared with 894,537 tons during the same period last year.
Total dispatches by south reduced by 18.64pc to 1.653 million tons during first two months of current financial year from 2.032 million tons during same period of last financial year.
APCMA spokesman mentioned that the domestic update is continuously showing negative trend since last 12 months as the industry is struggling to cope with higher taxes and economic uncertainty in the country whereas heavy monsoon also impacted the construction activities during last month.
“In the current budget excise on cement doubled along with sharp increase in other federal and provincial taxes. No other businesses have been taxed in such an enormous proportion. Government must review the taxation measures as the construction sector is suffering due to continuous decline in domestic offtake, which in turn is hurting the employment opportunities for skilled and unskilled labor putting more pressure on already struggling economy. We urge the government to address the concerns of cement industry in order to bring it out of these difficult times”, he added.
