Pakistan’s cement industry extended its slump for the eleventh consecutive month in July, with despatches plummeting by 6.81% compared to the same period last year. Total cement dispatches fell to 3.01 million tons from 3.23 million tons in the previous year.
The domestic market bore the brunt of the decline, witnessing an 11.41% drop in despatches. North-based cement mills were particularly affected, with a 11.40% decrease. However, the southern region saw a modest 8.20% growth.
Despite the overall downturn, cement exports showcased a positive trend, rising by 21.65% to 547,162 tons. While South-based mills led the export charge with a 36.67% increase, North-based mills experienced a decline of 18.79%.
The All Pakistan Cement Manufacturers Association attributed the domestic slump to increased taxation and rising input costs, coupled with a sluggish economy. The association has urged the government to reconsider its tax policies to support the sector.
While the government’s documentation drive is appreciated, the association believes that imposing complex tax requirements on small retailers is counterproductive. They advocate for a more streamlined approach to taxation for the cement industry.
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