Pakistan’s cement industry expected to grow 8%

Pakistan’s cement consumption grew 16.53 per cent between July-August of this year with a positive outlook for the rest of the year forecast.

Domestic cement demand is expected to increase by 8-8.5 per cent per annum on the back of hydropower plants currently under construction or planned as part of the Public Sector Development Programme (PSDP) and China Pakistan Economic Corridor (CPEC) investments. CPEC is expected to implement three hydropower projects at Karot, Suki Kinari and Kohala over the next 4-5 years, boosting cement demand by 4.6Mta. The total demand required by upcoming hydropower projects in the country is projected to reach 15Mt.

In terms of the cement industry, the expansion of cement demand is forecast to result in a local cement capacity utilisation of 74-81 per cent in FY18-21.