Cement sales in Pakistan have declined for the 11th consecutive month, dropping by 6.81 percent in July 2024.
According to the data released by the All Pakistan Cement Manufacturers Association, the total cement dispatches during July 2024 were 3.010 million tons, compared to 3.230 million tons dispatched during the same month of the last fiscal year.
Local cement dispatches by the industry during the month of July 2024 were 2.463 million tons, compared to 2.780 million tons in July 2023, showing a decline of 11.41%. On the export side, dispatches 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 dispatched 2.192 million tons of cement, showing a decline of 11.40% against 2.474 million tons dispatched in July 2023. On the contrary, South-based mills dispatched 817,799 tons of cement during July 2024, which was 8.20% more compared to the dispatches of 755,824 tons during July 2023.
North-based cement mills dispatched 2.093 million tons of cement in domestic markets in July 2024, showing a decline of 11.01% against 2.352 million tons dispatched in July 2023. South-based mills dispatched 369,557 tons of cement in local markets during July 2024, which was also 13.62% less compared to the dispatches of 427,847 tons during 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.
A spokesman for the All Pakistan Cement Manufacturers Association said that higher taxes and increasing input costs are seriously affecting the cement sector of the country.
He added that this is the 11th straight month during which domestic dispatches are showing a declining trend due to sluggish economic activity in the country. The cement industry urges the government to review its taxation policies in order to reduce the burden of heavy taxes on this important sector of the economy.
“We support the 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, the whole amount of sales tax on consumer price is already being paid by the manufacturer,” he added.
