Pakistan cement sector growth rises 5.2% in FY13

Pakistan’s central bank reported growth in the domestic cement sector in FY13 of 5.2 per cent compared to 2.9 per cent the year before.

The annual report released last week by the State Bank of Pakistan shows that total growth in large-scale manufacturing recovered from just 1.1 per cent in FY12 to 4.4 per cent in FY13 – the highest rate in the past five years.

Officials attributed the growth in the cement and construction industry to stability in building materials prices, a higher allocation of funds in the Public Sector Development Programme. Higher domestic sales as well as lower financial costs and reduced coal prices eased cost pressures for manufacturers and increased margins across the cement sector.

Domestic cement sales demonstrated a positive performance through FY13, with total dispatches rising 4.7 per cent. Exports, however, declined by 2.3 per cent YoY, according to data from the All Pakistan Cement Manufacturers’ Association (APCMA). Sales to Afghanistan – traditionally the country's largest export market – decelerated due to the imposition of a duty on imports from Pakistan and competition from Iranian cement.