Pakistan: cement exports and dispatches rise

Cement exports from Pakistan increased 1.9 per cent during first five months (July-November) of the current fiscal year, compared to the corresponding period of last year.

Exports during the period under review were recorded at US$229.8m compared to the exports of US$225.6m in July-November 2013, according to the latest data of Pakistan Bureau of Statistics (PBS).

On YoY and MoM basis, the cement exports in November 2014 also surged by 28.06 per cent and 25.7 per cent against November 2013 and October 2014, respectively.

Owing to a recent pickup in construction activities led by the initiation of mega projects like Metro bus, development projects in the northern region and various housing projects, cement dispatches have shown decent growth in 1HFY15.

Industry sources estimate local dispatches in 1HFY15 to stand at 13Mt, as compared to 12Mt in 1HFY14, up nine per cent. They said that during the pre-economic crisis era, local cement sales were growing 15 per cent annually versus 6.2 per cent average GDP growth. Volumetric growth, however, remained sluggish at an average 2.8 per cent during last six years, in line with low GDP growth of three per cent.

With a strong economic recovery in Pakistan, it is expected that average GDP will grow at 5 per cent in next three years, which could lift local cement sales.