Pakistan’s cement industry recorded a 6.81% decline in dispatches in July 2024. Total Cement despatches during July 2024 were 3.010 million tons, compared to 3.230 Million Tons despatched during the same month of the previous fiscal year.

According to the data released by the All Pakistan Cement Manufacturers Association, local cement despatches by the industry during July 2024 were 2.463 million tons compared to 2.780 million tons in July 2023, showing a decline of 11.41%. On the exports side, despatches increased by 21.65% as the volumes jumped from 449,792 tons in July 2023 to 547,162 tons in July 2024.

In July 2024, north-based cement mills despatched 2.192 million tons of cement, a decline of 11.40% compared to 2.474 million tons despatched in July 2023. On the contrary, south-based mills despatched 817,799 tons of cement during July 2024, 8.20% more than the 755,824 tons despatched in July 2023.

North-based cement mills despatched 2.093 million tons of cement in domestic markets in July 2024, a decline of 11.01% compared to 2.352 million tons despatched in July 2023. South-based mills despatched 369,557 tons of cement in local markets during July 2024, which was also 13.62% less than the 427,847 tons despatched in July 2023.

Exports from North-based mills declined by 18.79% as the quantities reduced from 121,814 tons in July 2023 to 98,920 tons in July 2024. Exports from the South, however, increased by 36.67% to 448,242 tons in July 2024 from 327,977 tons during the same month last year.

The All Pakistan Cement Manufacturers Association spokesman emphasized that higher taxes and increasing input costs seriously affect the country’s cement sector. He added that this is the 11th straight month during which domestic despatches are showing a declining trend due to sluggish economic activity in the country. The cement industry urges the government to review its taxation policies to reduce the burden of heavy taxes on this important sector of the economy.

We support documentation drive of the government but forcing very small retailers to register in a complicated sales tax system and installing PoS is not likely to yield any additional sales tax revenue as cement being a 3rd Schedule item, whole amount of sales tax on consumer price is already being paid by the manufacturer, he added.