Sales of Pakistan’s cement companies increase in November

Cement dispatches across Pakistan saw a notable increase despite lower demand due to higher construction costs. The overall cement sales surged 5.58% in November, with a total of 4.15 million tons dispatched compared to 3.93 million tons during the same period last year, according to the All Pakistan Cement Manufacturers Association (APCMA).

The data revealed that local cement dispatches rose to 3.342 million tons in November, up by 2.39% from 3.26 million tons in November 2023.

The export sector also showed significant growth, with dispatches increasing by 21.27%, from 662,374 tons last November to 803,258 tons this year.

Analysts say due to low spending on the Public Sector Development Program, lackluster demand in real estate sector and no noticeable mega infrastructure projects by government, the demand of cement in local market will remain low keeping pressure on sales.

However, the overall performance for the first five months of the current fiscal year was less encouraging. Total cement dispatches (domestic and exports) were recorded at 18.78 million tons, a 5.24% decrease from the 19.82 million tons dispatched during the same period of the previous fiscal year.

Domestic dispatches saw a substantial decline of 11.61%, falling to 14.75 million tons from 16.69 million tons. In contrast, export dispatches surged by 28.73%, reaching 4.03 million tons compared to 3.13 million tons in the first five months of the last fiscal year.

Commenting on the figures, an APCMA spokesperson suggested that cement sales, particularly domestic off-take, could be boosted if the government were to reduce duties and taxes. This reduction would lower costs for consumers and potentially increase demand, allowing the sector to utilize its idle capacity more effectively, he added.

With a booming population and a government committed to rapid and sustainable growth in all economic, social, and national groups, Pakistan’s construction sector is likely to experience rapid growth — and change — in the years ahead.

According to a recent report on the country’s outlook from the Pakistan Credit Agency Ltd (PACRA), Pakistan’s construction sector may nearly double by 2030 as the triple combination of demographics, industry reforms, and government support underpin the market for the long-term.