Islamabad: Amidst the rising inflation, the cement industry has witnessed a 16% dip in the year-on-year consumption rate recorded in May, news sources reported on June 8. The total domestic consumption of cement fell to 3.15 million tons as compared to 3.21 million tons in the same period last year.
The All Pakistan Cement Manufacturers Association (APCMA) revealed data showing that cement exports fell by 77 % to 171,915 tonnes in the same month last year, from 746,550 tonnes. Overall cement consumption in 11MFY22 was 47.62 million tonnes, down 8.8% from 52.22 million tonnes recorded in the previous fiscal year. According to the research, yearly cement consumption and exports fell by 43.32% to 42.65 million tonnes in the first 11 months of the fiscal year 2022 (11MFY22) from 43.45 million tonnes in July-May, while exports fell by 43.32 % to 4.97 million tonnes from 8.77 million tonnes in 11MFY21.
According to the association’s view, higher production costs and interest rates have slowed the pace of construction projects. According to APCMA, the major cause of the consumption slowdown was the government’s decreased spending on PSDP in FY22. The association has requested that the government boost the number of projects under the Public Sector Development Programme (PSDP) and China-Pakistan-Economic-Corridor (CPEC), as it will boost the cement manufacturing industry.
It is worth noting that the government has chosen to allocate PKR 800 billion for PSDP projects in the FY 2022-23 budget, which will be announced on June 10.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
