Pakistan’s Cement sector faces prolonged decline: sales drop 6.81% in July

Pakistan, August 6, 2024: Pakistan’s cement sector continues to struggle, with sales dropping 6.81% compared to the same month last year. The persistent downward trend raises concerns about the industry’s prospects.

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According to All Pakistan Cement Manufacturers Association (APCMA) reports, total cement dispatches in July 2024 reached 4.84 million tons, down from 5.19 million tons the previous year. Both local and domestic markets have witnessed a decline. Domestic sales have dropped by 5.54%  to 3.98 million tons. Similarly, the export market has faced a decline of 12.52% to 0.86 million tons.

Industry experts blame adverse economic conditions, rising production costs, and fluctuating demand for the plummeting. Moreover, energy and raw material costs have squeezed the profit margin. The export market has also suffered due to geopolitical tensions and increased competition in the region.

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Pakistani cement was considered competitive due to its low prices but is now struggling to maintain its foothold in the competitive global market. Industry stakeholders are seeking relief from the government, including a reduction in energy costs, tax relief, and incentives for construction projects.

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