Friday, June 1, 2012

PAKISTAN: Cement production increased to 44mn tonnes in 2011-12: Hafeez



Minister for Finance Dr Hafeez Shaikh on Thursday said that cement production capacity in the country increased to 44 million tonnes in 2011-12 from 30 million tonnes in 2006-07 due to the establishment of new cement plants.

Launching the Economic Survey 2011-12 at a press conference here he said Pakistan's cement is being exported to Afghanistan, India, Africa and Middle East.

Dr. Hafeez said that export of cement is exempted from the Sales Tax and Federal Excise Duty (FED). However, a 16 percent sales tax and the Rs. 500 per ton Federal Excise Duty are being charged on the domestic consumption.

He said that the import of coal used as fuel for the cement plants is allowed at 0 percent customs duty and 16 percent sales tax. As per the investment policy of the government, the import of plant machinery and equipment for the manufacturing sectors is allowed at 5 percent customs duty.

He said that the key factors hindering the overall production capacity of cement industry are the energy crises and demand and supply mechanism.

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