Pakistan: cement export volumes down by almost one-third in 6MFY15-16

Pakistan: cement export volumes down by almost one-third in 6MFY15-16
Published: 09 February 2016

Tagged Under: Pakistan Afghanistan Exports 

Pakistan recorded a marked fall in exports over the first six months of the current fiscal, largely on the back of weaker demand and increased competition.
 
Export revenues were down by 36.54 per cent YoY during the July-December period (ie, 6MFY15-16) to US$170.46m, according to data from Pakistan Bureau of Statistics. Export volumes fell by 32.79 per cent YoY to 3.079Mt.

In December 2015 alone, Pakistan exported 434,781t on revenues of US$22.89m compared to 569,620t at US$30.12m in November 2015, translating to a MoM fall of 23.67 and 24 per cent in terms of quantity and dollar value, respectively. On an annual comparative basis, there was a drop of 35.25 and 41.03 per cent in terms of volume and value, respectively versus December 2014.
 
Exports to Afghanistan were down by 20.03 per cent with dispatches only amounting to 1.309Mt. However, exports to India rose by 14.19 per cent to 370,990t. Shipments to other Pakistan export markets around the world declined by 37 per cent.
 
A spokesman for the All Pakistan Cement Manufacturers Association (APCMA) said that government has not been able to work with industry to reverse the decline in exports. He added that the association has time and again drawn the government’s attention towards the alleged illegal imports of under-invoiced cement from Iran. The industry is calling for a proper vigilance and accountability system to address the situation. It has also suggested that the government impose a 20 per cent regulatory duty on cement imports, as well as customs duty to protect the local industry.
 
The spokesman further mentioned that the government should also look towards reducing energy costs including the removal of taxes imposed on gas, a reduction of customs duty on coal to zero per cent, and an additional incentive of five per cent on exports of cement by sea to reduce the overall cost of operations and increase the competitiveness of local producers.