Pakistan: Producers to invest up to US$1bn in CAPEX

Pakistan: Producers to invest up to US$1bn in CAPEX

Cement producers in Pakistan will invest between US$700m and US$1bn in expanding capacity over the next few years, according to Mohammad Ali Tabba, chair of the All Pakistan Cement Manufacturers Association.

According to an interview with Mr Tabba in the Nation, four companies have already announced expansion plans: Cherat Cement; Attock Cement; DG Khan Cement; and Lucky Cement. Capacity in 2015-16 stands at 45.6Mta.

Despite this investment, Mr Tabba noted that the industry was not receiving the same degree of support from the government as were other sectors. The industry is on course to pay over US$859m in taxes this year.

While the tax burden on manufacturers has risen, cement prices have fallen over the past two to three years, Mr Tabba said. He also highlighted the fact that between 0.5Mt and 0.7Mt of cement was being smuggled into the country from Iran.