Tuesday, January 26, 2016

PAKISTAN: Cement export suffers massive decline in Jan

During the first half of current fiscal year country’s cement exports declined by a massive 25.68% to 3.01 Million Tons compared to 4.06 Million Tons during July to Dec., 2014. The North based mills registered decline of 25.09 percent as exports were restricted to 1.9 million tons in first six months of current fiscal compared to 2.54 million tons during same period last fiscal. The South based factories also suffered decline of 26.67% in exports as the quantities dropped to 1.11 Million Tons duly July to Dec of current fiscal compared to 1.52 Million Tons during same period of last fiscal. 

The industry despatched 3.44 million tons of cement in December 2015 compared with 3.11 million tons despatched in December 2014 showing growth of 10.53%. The local despatches were 2.98 million tons during December 2015 against 2.5 million tons during December 2014 depicting increase of 19.28%. The exports despatches showed decline by 25.39% as against 610,000 tons exports during December 2014, the industry exported 455,000 tons during December 2015.

The spokesman of All Pakistan Cement Manufacturers Association said that government has not been able to work with industry to arrest the decline in exports. He added that the Association has time and again drawn government’s attention towards illegal imports of under invoiced cement from Iran. The industry has urged that a proper vigilance and accountability system needs to be put in place to stop cement smuggling into the country.

Government should also impose 20% Regulatory Duty for import of cement in addition to custom duty in order to protect local industry.

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