The half-yearly report for 2024-25 from the Board of Directors of the State Bank of Pakistan (SBP) was recently released, in which the central bank addressed the challenges facing the Pakistani cement industry.
The SBP states cement exports increased in 1HFY25, primarily destined for Afghanistan. Export viability also improved due to a decrease in international coal prices. Moreover, the industry explored new markets by exporting clinker to Gabon and Yemen.
However, on the domestic front, there was a substantial decline in construction activity which the report attributed to restrained development spending, elevated prices of construction materials, and ongoing uncertainty in the real estate market. These trends were reflected in the lacklustre performance of construction-allied industries, especially cement and steel. Cement production dropped in 1HFY25, following a slight recovery observed the previous year. Similarly, steel production plummeted, with long steel experiencing a decline for the third consecutive year.
By Abdul Rab Siddiqi, Pakistan
