Islamabad: Cement despatches continued their downward trend in July 2024, marking the 11th consecutive month of decline with a 6.81% reduction, as reported on August 5.
As per details, data from the All Pakistan Cement Manufacturers Association reveals that total cement despatches dropped to 3.010 million tons in July 2024, down from 3.230 million tons in the same month last year.
Local cement despatches saw a significant decrease of 11.41%, falling to 2.463 million tons from 2.780 million tons in July 2023. However, exports showed a positive shift, increasing by 21.65% from 449,792 tons in July 2023 to 547,162 tons in July 2024.
Regional performance highlights a mixed picture: North-based cement mills reported despatches of 2.192 million tons, an 11.40% drop compared to 2.474 million tons in July 2023. Conversely, South-based mills saw an 8.20% increase in despatches, reaching 817,799 tons from 755,824 tons in the previous year. In the local market, North-based mills despatched 2.093 million tons in July 2024, reflecting an 11.01% decline from 2.352 million tons in July 2023. South-based mills’ local despatches also fell by 13.62%, totaling 369,557 tons compared to 427,847 tons the year before.
Export performance varied by region: North-based mills experienced an 18.79% decrease in exports, dropping from 121,814 tons in July 2023 to 98,920 tons in July 2024. In contrast, South-based mills saw a 36.67% increase, with exports rising to 448,242 tons from 327,977 tons. A spokesperson from the All Pakistan Cement Manufacturers Association attributed the decline in domestic despatches to higher taxes and rising input costs, exacerbated by sluggish economic activity. The association is urging the government to reconsider its taxation policies to alleviate the financial strain on the sector.
“We support the government’s documentation drive but argue that imposing complex sales tax requirements on very small retailers is unlikely to boost revenue. Cement, being a 3rd Schedule item, already has sales tax fully covered by manufacturers,” the spokesperson stated.
