KARACHI: Cement despatches to domestic markets during the month of June increased by 9.2 percent to 2.96 million tonnes compared to 2.71 million tonnes during the same month last year.
Exports during June were 387,060 tonnes against 552,867 tonnes last year, showing a massive decline of 30%. Total despatches during June 2016 were 3.35 million tonnes as compared to 3.26 million tonnes during the same month last year, showing a marginal increase of 2.57 percent, mainly affected due to substantial downfall in exports.
According to the data released by All Pakistan Cement Manufacturers Association, during the fiscal year 15-16, cement industry despatched 33 million tonnes in local markets, posting a robust growth of 17.01 percent compared with local despatches during the same period of last fiscal year that were 28.2 million tonnes.
Exports from the country massively declined by 18.38 percent to 5.87 million tonnes compared with exports during last fiscal year that were 7.2 million tons. Exports to India have increased by 42.53% to 992,631 tons during fiscal year 15-16 against 696,417 tonnes during last fiscal. However, the decline in exports to Afghanistan by 15.1% and via sea to other countries by 32.68% affected the overall exports of the country. Unstable situation in Afghanistan and influx of Iranian cement exports limited to 2.44 million tonnes during fiscal year 15-16 compared to 2.87 million tonnes during last fiscal.
Likewise, increased competition on global level coupled with economic slowdown in countries where Pakistan has been exporting reduced the country’s exports by sea to 2.44 Million Tons during fiscal year 15~16 compared to 3.62 Million Tons during last fiscal.
Total despatches during fiscal year 15-16 showed a growth of 9.82 % compared to last fiscal year as the volume increased to 38.87 million tonnes against 35.34 million tonnes from July 14 to June 15. Cement sector closed the financial year 15-16 on a positive note. The only sour point was the additional tax imposed in budget 2016-17 that increased the cement price by Rs 35 per bag.
