Pakistan exports to India slow

Pakistan exports to India slow

Exports of cement over the northeast border of Pakistan to western India have slowed over the past week due to border tension between Islamabad and New Delhi.

It has been alleged that trucks carrying cement are being examined carefully and slowly, which has partially affected deliveries, the All Pakistan Cement Manufacturers Association has said.

The issue is exacerbating the concerns of a drop in exports from Pakistan to its neighbour over the past six months. Over July-December 2012 period, exports from Pakistan to India fell 40.1 per cent from 350,059t to 208,594t.  Latest APCMA data indicates that exports of cement have been stagnant at 25,207t. However, a local brokerage house termed the situation favourable to local cement producers to concentrate more on domestic market.

Another setback to Pakistani cement exporters is the delay in granting India Most favoured Nation (MFN) status. This was scheduled to be undertaken at the beginning of January 2013 but has been delayed due to non inter-ministerial clearance and some objections from the industries. The Pakistan cement industry has been advocating that non-trade barrier should be removed from the Indian side for mutual trade and exports.