Pakistan cement sales in FY09 registered an increase of two per cent year-on-year (YoY) to 30.6Mt compared to a three-year historical Cumulative Average Growth Rate (CAGR) of 23 per cent, latest data released by All Pakistan Cement Manufacturers Association said.
Domestic sales were down 19.3Mt (a fall of 14 per cent YoY) however, exports increased a significant 47 per cent YoY to 11.3Mt.
Positive key growth factors for the sector included record Public Sector Development Programme allocation (PKR621bn) in the FY10 budget, a reduction in excise duty of Rs 10 per bag and declining interest rates.
However, the economic slowdown, political uncertainty and budgetary constraints hampered infrastructure activity as well as private sector development projects in FY09, analysts said.
As a result, local cement dispatches dropped 14 per cent to 19.3Mt. However, signs that this trend has started to reverse were witnessed in June 2009 as local sales registered 1.7Mt – up five per cent MoM.
Source: Daily Times, Pakistan