Pakistan cement sales to improve 11%

Pakistan cement sales to improve 11%
Published: 27 May 2010

With higher construction activities by the private sector and recovery in economic activities, the total cement despatches in Pakistan are expected to improve by 11 per cent to 34Mt in fiscal year (FY) 2010.



However, due to economic stabilisation measures and low development expenditure sales will increase by 5-8 percent next year, Topline Research analyst Furqan Punjani said.



A rebound in coal prices and higher electricity cost will keep the cement margins depressed, he said and added that big players like Lucky Cement would dominate the market since small players, due to their old technology, will not be able to operate under the current margins.



Export markets will be the main story for the cement manufacturers, especially after the introduction of freight subsidy on exports, he said. 

FY11 budget expectations: The cement sector may witness some negative developments in the upcoming budget of FY11, as unlike past budgets lower Public Sector Development Programme (PSDP) targets and implementation of value-added tax (VAT) this time, would remain key concerns for the sector.