The steep increase in taxes has led to a significant rise in cement prices in Pakistan, causing a sharp decline in demand. Cement dispatches in August 2024 fell by 25.68% to 3.366 million tons, compared to 4.528 million tons in August 2023, as reported by the All Pakistan Cement Manufacturers Association (APCMA).
Local cement dispatches dropped by 27.54%, from 3.798 million tons in August 2023 to 2.752 million tons in August 2024. Exports also decreased by 16%, with volumes declining from 730,755 tons in August 2023 to 613,857 tons in August 2024.
In August 2024, mills in the north dispatched 2.53 million tons, a 22.2% decline from 3.252 million tons in August 2023. Mills in the south dispatched 835,245 tons, down 34.54% compared to 1.276 million tons in August 2023.
Domestic dispatches from northern mills were 2.325 million tons in August 2024, a 24.7% decrease from 3.088 million tons in August 2023. Southern mills’ domestic dispatches were 426,289 tons, down 39.91% from 709,443 tons in August 2023.
Interestingly, exports from northern mills rose by 24.79%, from 164,195 tons in August 2023 to 204,901 tons in August 2024. However, exports from southern mills fell by 27.82%, from 566,560 tons in August 2023 to 408,956 tons in August 2024.
During the first two months of the current fiscal year, total cement dispatches (both domestic and exports) were 6.375 million tons, 17.82% less than the 7.758 million tons recorded during the same period last fiscal year. Domestic dispatches decreased by 20.73%, from 6.578 million tons to 5.214 million tons. Exports slightly dropped by 1.65%, from 1.181 million tons to 1.161 million tons.
North-based mills dispatched 4.418 million tons domestically in the first two months of the current fiscal year, an 18.78% decrease from 5.440 million tons during July-August 2023. Exports from the north increased by 6.23%, reaching 303,821 tons in July-August 2024 compared to 286,009 tons in the previous year. Overall dispatches by northern mills decreased by 17.53%, to 4.722 million tons from 5.726 million tons in the same period of the last fiscal year.
Domestic dispatches by southern mills in July-August 2024 were 795,846 tons, a 30.02% reduction from 1.137 million tons in the same period last year. Exports from the south also declined by 4.17%, from 894,537 tons to 857,198 tons. Total dispatches from southern mills dropped by 18.64%, from 2.032 million tons to 1.653 million tons.
An APCMA spokesperson highlighted that the domestic market has shown a negative trend for the past 12 months due to high taxes and economic uncertainty. Additionally, heavy monsoon rains disrupted construction activities last month.
The spokesperson pointed out that in the current budget, excise duty on cement was doubled along with a sharp increase in other federal and provincial taxes, which were imposed on the industry at an unprecedented rate.
He urged the government to reconsider these tax measures, as the decline in the construction sector is adversely affecting employment for both skilled and unskilled labor, further straining the economy. He called on the government to address the concerns of the cement industry to help it navigate these challenging times.
