Pakistan's capacity utilisation stands 91%

The All Pakistan Cement Manufacturers Association (APCMA) reports that the domestic cement industry's capacity utilisation in the first eight months of this fiscal year (July 2017-Feb 2018) stood at 91 per cent of the total installed capacity of the sector.

In 8MFY17-18 the country's cement industry dispatched 31Mt of cement compared with dispatches of 26.3Mt in the corresponding period of last year, an increase of almost 18 per cent. In February 2018 alone, the total cement dispatches were 3.781Mt.

A spokesman of APCMA said that the cement industry is among the highest contributors to the national exchequer over the last few years. The contribution has increased to PKR117bn (US$1bn) in FY16-17 from PKR39bn in FY12-13. In FY16-17, the impact of duties and taxes was PKR3082/t or PKR154/bag. This incidence of high taxation negatively affects domestic consumption, said APCMA.

Presently, federal excise duty (FED) on cement is PKR1250/t, or PKR62.5/bag. The government should honour its promise and gradually reduce FED to zero to encourage cement off-take as this would support housing and infrastructural development in the country and create more employment, the association argued.

An APCMA spokesman, attributing domestic sector growth to government policies and its thrust on mega infrastructure projects, said that the local production could increase substantially if the smuggling of this commodity from Iranian border is checked.

Moreover, APCMA appealed that the customs duty on import of both clinker and cement should increase to a uniform rate of 35 per cent to support the local cement industry.

"Moreover, import of cement should not be allowed until Pakistan Standards and Quality Control Authority certifies the quality of cement being imported into the country," the association added.