Exports remain on recovery path with 9% increase. PHOTO: FILE
LAHORE: The cement industry continued to remain on the growth path at the start of new fiscal year despite some disruption caused by hectic electioneering before polls on July 25.
The industry posted a 5.10% growth in sales for July following conclusion of its most successful financial year on June 30, 2018.
According to data released by the All Pakistan Cement Manufacturers Association on Friday, fiscal year 2018-19 started on a positive note for both domestic sales and exports.
In July, total cement sales were recorded at 3.554 million tons, up 5.10% compared to sales of 3.382 million tons in July 2017.
Cement industry foresees 50% capacity expansion
According to the association, economic and construction activities generally slow down with intensifying election campaigns as some workers return to their respective towns and villages for casting ballot.
However, it did not restrict the sales growth which indicates that cement and construction industries are on the rise and will continue to advance for a long time to come.
In July 2018, cement exports rose 9.25% from 0.476 million tons in July 2017 to 0.520 million tons whereas domestic sales increased 4.42% from 2.906 million tons to 3.035 million tons.
The export growth was consistent, but was higher year-on-year due to a low base effect. The increase in domestic sales was comparatively lower in percentage terms because of a high base.
Cement prices increased by Rs15-20 in northern region
The industry looked happy with the recent surge in exports that had been going down for the past many years from 2008-2017 and had started recovering in the last few months.
Exports by sea increased 133.71% from 0.144 million tons in July 2017 to 0.336 million tons in July 2018, which offset the decrease in shipments to Afghanistan and India. Exports to Afghanistan and India fell around 44.88% and 44.43% respectively.
The association's spokesman voiced hope that after the installation of new government, economic activities would gain pace and cement demand would rise further.
"We expect new economic managers to make necessary policy changes that the industry has been demanding for promoting demand and also take steps for exploring more export opportunities in neighbouring countries," he added.
Published in The Express Tribune, August 4th, 2018.
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