Pakistan cement industry's US$1bn expansion

Pakistan cement industry's US$1bn expansion

The steady growth of Pakistan’s cement industry saw the sector attract investment of US$1bn in the current financial year, an economic survey has revealed.

Economic Survey 2015-16, released today by Pakistan’s Ministry of Finance, finds that the cement industry is focussing on capacity expansion in view of ever-growing domestic demand and a focus on exports to African markets. Four companies have already announced further investment plans: Cherat Cement, Attock Cement, DG Khan Cement and Lucky Cement.

Booming construction activity, driven by infrastructure and power related projects begun in the period July 2015 to April 2016 have buoyed up Pakistan’s cement firms. The Public Sector Development Program (PSDP) saw its funding increased from PKR350bn (US$3.3bn) in FY2013 to PKR700bn (US$6.7bn) in FY2016. The China Pakistan Economic Corridor (CPEC) programme has also created demand for cement and related materials.

During Pakistan’s fiscal year – July 2015 to April 2016 – cement industry domestic dispatches improved to 26.97Mt, a growth rate of of 17.3 per cent on FY2014-15.

In view of anticipated demand from development projects under PSDP and CPEC and ongoing housing schemes in the public and private sector, the cement industry will expand production capacity from its existing level of 45.62Mta to approximately 53Mta over the next two to three years.