You are currently viewing Pakistan’s cement sector faced significant challenges in FY24.

Pakistan’s cement sector faced significant challenges in FY24.

The cement industry in Pakistan faced significant challenges in FY24, as reported by the central bank. The financial year data represents ten months. The State Bank of Pakistan (SBP) released the country’s economic survey 2023-24 on June 11, shedding light on the state of the Pakistani cement industry.

The report highlighted the key challenges that the industry faced in FY24. These included fiscal limitations and restricted foreign aid from the government, which hindered rehabilitation efforts in flood-affected areas and led to a slowdown in the construction sector. The global economic downturn also played a significant role, reducing cement exports to key destinations such as Sri Lanka and Bangladesh. Additionally, the sharp increase in construction material prices profoundly impacted the industry’s performance.

Currently, Pakistan’s cement industry exports its cement and clinker to Afghanistan, Sri Lanka, Maldives, Djibouti, Somalia, Tanzania, Kenya, Uganda, Mozambique, South Africa, Madagascar, Comoros, Seychelles, Iraq, Ethiopia, Qatar, and the USA.

Northern Region dispatches indicate that domestic consumption in the north was recorded at 26.178 million tonnes during the first ten months of the current fiscal year, showing a negative growth of 3.6 per cent compared to last year. Exports from the north grew by 37.5 percent, reaching 1.186 million tonnes, compared to 0.863 million tonnes during the previous year.

The analysis of the southern region shows that domestic consumption in the south decreased by 6.5 percent, reaching 5.553 million tonnes during the first ten months of the current fiscal year, compared to 5.938 million tonnes last year. Exports from the region increased by 74.9 percent, from 2.593 million tonnes to 4.528 million tonnes the previous year.

Cumulative:

Despite the challenges, the Pakistani cement industry showed resilience and growth in FY24. The industry grew by 2.4 percent, primarily driven by a significant export increase. Total cement dispatches reached 37.446 million tonnes, while domestic consumption contracted by 4.1 percent to 31.731 million tonnes. A positive aspect was the notable increase in export shipments, which surged 65.4 percent from 3.456 million tonnes to 5.715 million tonnes over the same period.

Author

Sharing is caring

Leave a Reply