Cement output in Pakistan rises in 10MFY17-18

According to Pakistan's Federal Bureau of Statistics, the large-scale manufacturing sector posted 6.13 per cent growth in the first 10 months of FY17-18 (July 2017-April 2018) as the construction boom continued to drive the consumption of cement and steel, while other sectors also recording growth.

Local cement industry production was recorded at 35.015Mt during this period from the 31.116Mt produced in 10M16-17, representing a YoY growth of 12.5 per cent. This trend was also observed in  April 2018, when industry produced 3.787Mt of cement compared to 3.335Mt in same month last year. This translates a growth of 13.4 per cent.

A spokesperson of APCMA, the country's cement producers' association, expressed hope recently that local cement consumption will once again rise after Ramadan while the continuous increase in exports is a welcome sign for the industry. However, the major factor behind rise in exports is the decline in the rupee value against the US dollar that improved competitiveness of cement sector in the global markets.

APCMA urged the government to withdraw the recent increase in Federal Excise Duty (FED) which will hurt local consumption as this will have an impact of PKR15/bag, thereby raising cost of construction.