KARACHI: During July to November 2015, cement industry has posted a growth of 15.64 percent in domestic sales compared with the same period of last fiscal year. Domestic despatches rose to 12.2 million tons during this period against 10.56 million tons during same period of last fiscal. However, exports during July to November 2015 recorded a massive decline to 2.56 million tons from 3.45 million tons during last year ie by 25.73 percent. The overall situation during first five months of current fiscal year showed a growth of 5.46% compared to the same period of last fiscal year.
Quantitatively the total despatches by cement industry were 14.77 million tons from July 15 to November 15 against 14 million tons during corresponding period of last fiscal year. Analysing zone wise despatches, the north based cement mills despatched 10.17 million tons to domestic markets during July to November 2015 that was 14.6 percent higher than the despatches during same period of last fiscal. Exports from north however declined during this period to 1.63 million tons ie by 25.24 percent over last fiscal that were 2.18 million tons.
In southern region, the cement mills experienced even more growth in domestic markets as against despatches of 1.69 million tons during July to November 2014, the domestic dispatches increased by 21.09 percent to 2.04 million tons. However there was a definite slump in exports that declined by 26.58 percent to 0.93 million tons from 1.26 million tons during the corresponding period last year.
The upward trend in domestic consumption of cement this fiscal continued in 5th straight month; at the same time exports continued to lose global markets. Cement dispatches to domestic markets during the month of November 2015 were 2.843 million tons compared with 2.369 million tons during same month last year showing an increase of 20%. Exports during November 2015 were 0.533 million tons against 0.66 million tons during November, 2014 showing decline of 19%. Total despatches during November, 2015 were 3.376 million tons compared to 3.028 million tons during same month last year showing increase of 11.49 percent. The despatches in November were the highest in past five months.
All Pakistan Cement Manufacturers Association (APCMA) spokesperson pointing the above mentioned figures regretted that government planners are still lacking to check unregulated import of Iranian cement in the country at under invoiced rates. The same cement, he added, is finding its ways in the Afghan markets in which our share has been reduced by 20.63% during the first five months of current fiscal year. He said that we are still facing the dilemma of Iranian cement despite reaching to various decision makers to suspend imports of Iranian cement into Pakistan from Balochistan by road and railway due to under invoicing and the connivance of custom authorities. The locally produced cement is fast losing its market in the areas adjacent to the Iranian border and the coastal areas of Balochistan. The industry has suggested that a strategy should be in place to protect the local cement industry against smuggling of Iranian cement coming into the country. Government should also make it mandatory to get the quality certification of Irani cement by PSQCA otherwise it should not be allowed to enter in the country.
He added that due to high cost of doing business in Pakistan, Pakistani cement industry is losing competitiveness to other countries such as Iran, UAE and India and has appealed for reduction in energy costs, removal of GIDC imposed on gas, abolition of custom duty on coal and additional incentive of 5% on export of cement by sea.
