Due to increased cement prices due to irrational taxation and low demand, local despatches were further reduced by 18% and now stand at the level of 2017. Cement despatches declined by 5.63% in September 2024. Total Cement despatches during September 2024 were 3.540 million tons, compared to 3.751 Million Tons despatched during last fiscal year.

According to the data released by the All Pakistan Cement Manufacturers Association, local cement despatches by the industry during September 2024 were 2.650 million tons compared to 3.233 million tons in September 2023, showing a decline of 18.02%. On the exports side, despatches increased by 71.52% as the volumes jumped from 570,692 tons in September 2023 to 978,871 tons in September 2024.

In September 2024, North-based cement mills despatched 2.407 million tons of cement, a decline of 12.78% compared to 2.759 million tons of despatches in September 2023. South-based mills despatched 1.246 million tons of cement, 14.23% more than the despatches of 0.992 million tons in September 2023.

North-based cement mills despatched 2.222 million tons of cement in domestic markets in September 2024, a decline of 15.51% compared to 2.630 million tons despatched in September 2023. South-based mills despatched 470,931 tons of cement in local markets during September 2024, which was 28.95% less than the 662,786 tons despatched in September 2023.

Exports from North-based mills increased by 42.93%, from 142,226 tons in September 2023 to 203,280 tons in September 2024. Exports from the South also increased by 81.02%, to 775,591 tons in September 2024 from 428,466 tons during the same month last year.

During the first three months of the current fiscal year, total cement despatches (domestic and exports) were 10.269 million tons, which is 13.59% lower than the 11.885 million tons despatched during the corresponding period of the previous fiscal year.

Domestic despatches during this period were 8.130 million tons against 10.133 million tons during the same period last year, showing a reduction of 19.78%. Export despatches showed 22.19% growth as the volumes increased to 2.140 million tons during the first three months of the current fiscal year compared to 1.751 million tons of exports during the same period of last fiscal year.

North-based Mills despatched 6.863 million tons of cement domestically during the first three months of the current fiscal year, showing a reduction of 17.65% from cement despatches of 8.333 million tons during July-September 2023. Exports from the North increased by 18.42% to 507,101 tons during July-September 2024 compared with 428,235 tons exported during the same period last year. Total despatches by North-based Mills reduced by 15.88% to 7.370 million tons during the first three months of the current financial year from 8.762 million tons during the last financial year.

Domestic despatches by South-based Mills during July-September 2024 were 1.267 million tons, showing a reduction of 29.63% over 1.8 million tons of cement despatched during the same period of last fiscal year. Exports from the South increased by 23.42% to 1.632 million tons during July-September 2024 compared with 1.323 million tons exported during the previous year. Total despatches by South-based Mills reduced by 7.16% to 2.9 million tons during the first three months of the current financial year from 3.123 million tons during the last financial year.  

A spokesman of the All Pakistan Cement Manufacturers Association mentioned that it is the fourth straight month in which we have experienced a decline in cement despatches. He expressed disappointment with the trend and said that the industry is on the verge of a crisis due to a continuous downfall in its capacity utilization. “If the government gives relief in duties and taxes to curb the cost of production, it can boost the domestic demand and will also make our product competitive in international markets, enabling us to tap more opportunities to earn foreign exchange for the country,” he added.