Cement sales decline by 22.8% in June 2023

Drop raises concerns about impact on the industry, economy

LAHORE:

Cement despatches in Pakistan faced a significant setback in June 2023, with a decline of 22.8%. This decline has raised concerns about the state of the cement industry and its potential impact on the country’s economy. Data released by the All Pakistan Cement Manufacturers Association (APCMA) revealed that total cement despatches in June 2023 were 4.063 million tonnes, compared to 5.264 million tonnes in the same period the previous year.

The data further highlighted that local cement despatches in June 2023 stood at 3.487 million tonnes, indicating a substantial decline of 29.97% from 4.979 million tonnes in June 2022. However, there was a positive aspect in the form of export despatches, which experienced a significant increase of 102.59%. The volume of exports rose from 284,471 tonnes in June 2022 to 576,309 tonnes in June 2023.

Regionally, North-based cement mills witnessed a decline of 30.08% in despatches, with 2.950 million tonnes in June 2023 compared to 4.220 million tonnes in June 2022. In contrast, South-based mills saw a 6.60% increase in despatches in June 2023.

Looking at the overall fiscal year 2022-23, total cement despatches (domestic and exports) amounted to 44.579 million tonnes, a decrease of 15.71% compared to the previous fiscal year. Domestic despatches accounted for 40.013 million tonnes, a reduction of 16.00%, while export despatches declined by 13.13%.

A spokesperson from the APCMA emphasised the importance of government support for export-oriented industries to revive the economy. He highlighted the need to utilise domestic resources to build a stronger Pakistan and viewed the IMF agreement as only an interim solution.

Published in The Express Tribune, July 5^th, 2023.

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