Local Cement Sales Dropped by 29%
Amid unprecedented economic nosedive and political chaos, the growth of the local industry halts and even the trajectory goes downward. According to the recent stats disclosed by the All Pakistan Cement Manufacturers Association (APCMA), domestic cement sales decreased by 29% in this March as compared to the same month last year. This decline is said to be the outcome of a deceleration in construction activity in the country.
Despite a 48.46% increase in cement export to other countries in March 2023 against the same month last year, the yearly cement export decreased by 35%. The total amount of cement that was sold during the first nine months of the fiscal year 2023, plummeted to 33.6 million tonnes from 40.76 million tonnes during the first nine months of the previous fiscal year. Whereas domestic export plunged from 36.126 million tonnes to 30.564 million tonnes during the same period.
APCMA spokesperson said that construction activities in the country have decreased notably in the ongoing fiscal year. This development has manifold consequences from the halt in cement production to diminishing employment opportunities as this sector produces thousands of job opportunities for skilled and unskilled labor.
Owing to the recent challenge, this sector requires considerable attention from the authorities. The recent downturn is not only demotivating the manufacturer and investors but also disturbing the cement price and thus, affecting the construction. Furthermore, because of the decline, companies go for layoff plans to manage the burden.
This sector has massive potential. It creates numerous jobs, supports the construction and housing sector and also generates revenue for the country. But we have largely been unable to materialize its maximum potential. Given its importance for the economy, the government should facilitate cement production via tax breaks or development schemes to overhaul this downward trend.
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