Pakistani exports record YoY fall but MoM rise

Pakistan's cement exports have recorded a marked fall in the first 11 months of FY15-16 as overseas demand has dropped and competition has intensified, according to data of the Pakistan Bureau of Statistics (PBS). The domestic cement industry exported 5.58Mt of cement with a total value of US$301.33 during July 2015-May 2016, compared to 7.184Mt and US$413.38 in the corresponding FY14-15 period and reflecting a fall in volume and value of 22.31 and 27.1 per cent, respectively.

The average price of cement also fell to US$53.98t from US$57.53t during this period.
 
However, in May 2016 Pakistan exported cement 521,188t at US$26.98m compared to 505,434t at $26.32m the previous month, reflecting a MoM increase of 3.12 and 2.53 per cent in terms of quantity and value in dollar, respectively. When compared with May 2015 exports of 541,800t at US$ 30.99m – a YoY fall of 3.80 and 12.92 per cent in terms of volume and value, respectively.
 
A spokesman of All Pakistan Cement Manufacturers Association (APCMA) said that the continuous drop exports are adding to the industry woes. Apart from the exports to India which increased by 33.36 percent from the low base reached last year, exports to Afghanistan and other destinations declined by 10.34 and 32.39 percent respectively in the first 11 months of this fiscal year.

The exports to other destinations declined by a considerable 33 per cent due to an economic slowdown in countries where Pakistan has been exporting. The government should provide incentives to the industry to take back the Afghan market and earn precious foreign exchange, he added.