LAHORE: The cement exports from the country witnessed 17.41 per cent decline in 11 months of outgoing fiscal year to 5.48 million tonnes against 6.64 million tonnes during same period of last fiscal year.
According to the data released by the All Pakistan Cement Manufacturers Association, the exports during May 2016 were 558,000 tonnes against 560,000 tonnes during May, 2015. Total despatches during May, 2016 were 3.622 million tonnes compared to 3.056 million tonnes during the same month last year, showing an increase of 18.52 percent.
Zone wise figures show that the domestic despatches by mills located in North were 2.5 million tonnes compared with despatches of 2.04 million tons during same month last fiscal depicting a growth of 22.31 percent. In South the domestic despatches were 563,942 tonnes compared with despatches of 451,521 tonnes in May 2015 depicting a growth of 24.9 percent.
The APCMA spokesman said that increase in FED on cement is against the industry’s demand as we were seeking some reduction in taxes to further enhance domestic dispatches.
The proposed change in FED will increase the illegal trade in the form of smuggling of cement into the country. Federal excise duty on cement has been increased from 5 percent on retail price (i.e. Rs 425 per ton) to Rs 1000 per ton in the federal budget 2016-17. ‘The impact of this increase calculates to Rs. 34 per bag’, the spokesman added.
He said that constantly falling exports are adding to the industry woes. Apart from the exports to India which increased by 33.36 percent from the low base reached last year, exports to Afghanistan and other destinations declined by 10.34 and 32.39 percent respectively in the first eleven months of this fiscal.
The exports to other destinations declined by whopping 32.39 percent due to economic slowdown in countries where Pakistan has been exporting. The government should provide incentives to the industry to take back the Afghan market and earn precious foreign exchange.
