Pakistan's cement prospects
Over the course of the 9MFY21-22 Pakistani producer profitablity has been supported by price retention and local demand, but falling exports and rising commodity prices are a cause for concern. Moreover, a slowdown in government spending on development projects could prevent domestic consumption from gaining traction. By Pakistan Credit Agency, Pakistan.
A slowdown in government spending is expected to cool Pakistan’s cement demand growth
In FY20-21 Pakistan’s nominal GDP increased to PKR52trn (US$254.3bn), up from PKR45trn in FY19-20, with real GDP growth of approximately six per cent YoY (FY19-20: -1.3 per cent). In FY21-22 real GDP growth is estimated to reach six per cent. The IMF forecasts Pakistan’s average real GDP growth rate at around 4.7 per cent over the next five years.
