Cement exports to India have declined by15.67 percent in the first quarter of the current fiscal year, as it stood at 137,742 tons against 163,340 tons in the corresponding period last year, an official said on Tuesday.
Aizaz Mansoor Sheikh, chairman of Association of Pakistan Cement Manufacturers (APCMA), said that Pakistan’s cement was preferred by the Indians because of high quality and the sector is expecting a quantum jump of at least 0.5 million tons in the last fiscal year on easing of non-tariff barriers (NTBs) by India but it did not happen.
Exports to India, in fact, have been on constant decline ever since the two countries opened their borders for liberal bilateral trade.
The decline is not due to the lack of cement demand in India but because of very stringent non-tariff barriers, he said.
The installed and unutilised capacity of the cement industry in Pakistan could be effectively exploited through exports to India, which is being granted status of the most favoured nation (MFN), if the non-tariff barriers are removed, said Sheikh.
The APCMA chief said that the government of Pakistan must persuade the cement industry’s case, which is facing problems due to the non-tariff barriers in India, despite increase in the demand.
Cement is one of the industries having potential to help bridge the gap between the volumes of trade between the two countries in which Pakistan’s exports are far less, he said.
Hence, it will be a win-win situation for the two countries in the future if their exports are level and local industries are encouraged to meet the demand of each other’s market through their strong sectors, they added.
Sheikh urged the two governments to avail the opportunity and strengthen each other as Pakistan is best cement provider to India having lots of demand in the construction sector, while its production units are running on full capacity.
It is an irony that Pakistan liberalised its trade with India last year, short-listing a few items in the negative list but the Indian government has not fulfilled its promise to withdraw all non-tariff barriers, causing hurdles in the free flow of trade between the two countries, he said.
Cement exporters, having potential to export a big quantity to the Indian market, are facing a resistance by the Indian government as NTBs are not removed even after having been specifically mentioned during various rounds of official and unofficial talks between the two countries, said Sheikh.
Exporters’ issues, including a complex six to seven months process to obtain a certificate from the Indian authorities should be resolved on a priority basis because it was committed by the Indian government for having a status of the most favoured nation from Pakistan, said APCMA chairman.
The quality certificate for cement exporters is valid for one-year period, despite six to seven months procedural duration, he said, adding, but none of the exporters is allowed to continue their exports after expiry of certificate limit that is needed to get renewal in a brief period.
The complicated process of quality certificate holds on cement exports of many companies at a time, hence, the exports quantity shrinks gradually, he said.
The procedures have not been eased by the Indians and the certification cost is very high as the exporters have to bear heavy expenses for the visit.
Exporters said that Pakistani and Indian railways could exchange the same number of wagons for transportation of goods; however, the Pakistani wagons could not carry big cement orders due to restriction by the Indian government as a rule of reciprocal.
The railways wagons from the Indian side are limited for cement exporters, which increases their cost of cement transportation heavily, they said.
Cement manufacturers said that Pakistan should cement trade ties with India on equality basis rather than giving easy access to the Indian company in the exchange of nothing in the presence of the non-tariff barriers.
They demanded the government to raise the issues of NTBs with the Indian government for immediate solution and allow Pakistani cement makers to explore markets in all potential provinces on a priority basis.
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