Cement sales in Pakistan drop by 6.81 per cent in July

WEB DESK: The All Pakistan Cement Manufacturers Association (APCMA) has reported a 6.81 per cent decline in cement sales for July 2024. Total cement sales amounted to 3.010 million tonnes, compared to 3.230 million tonnes in the same month last year.

Local cement sales for July 2024 stood at 2.463 million tonnes, marking an 11.41 per cent decrease from July 2023, when sales were 2.782 million tonnes.

In contrast, cement exports saw a significant increase of 21.65 per cent, reaching 547,162 tonnes in July 2024, up from 449,792 tonnes in July 2023.

Cement production in northern regions of Pakistan dropped by 11.40 per cent, with July 2024 sales totalling 2.192 million tonnes compared to 2.474 million tonnes in July 2023. Meanwhile, southern region cement factories reported an 8.20 per cent increase in sales, reaching 817,799 tonnes in July 2024, compared to 755,824 tonnes in July 2023.

Northern factories sold 2.093 million tonnes of cement locally in July 2024, an 11.01 per cent decline from 2.352 million tonnes in July 2023. Conversely, southern factories sold 369,557 tonnes locally, down 13.62 per cent from 427,847 tonnes in July 2023.

Cement exports from northern factories fell by 18.79 per cent to 98,920 tonnes in July 2024, compared to 121,814 tonnes in July 2023. Southern factories, however, saw a 36.67 per cent increase in exports, with 448,242 tonnes shipped out in July 2024, up from 327,977 tonnes the previous year.

An APCMA spokesperson noted that high taxes and rising input costs are severely impacting the cement sector. This marks the eleventh consecutive month of declining local demand for cement due to sluggish economic activity in the country.

The spokesperson urged the government to review its tax policies to alleviate the heavy tax burden on this vital sector.

They also expressed support for the government’s efforts to formalise the economy but criticised the complexity of the sales tax system and the imposition of Point of Sale (POS) requirements on very small retailers, arguing that these measures are unlikely to yield additional sales tax revenue.

The spokesperson added that cement, being a Third Schedule item, already includes sales tax in its retail price, which is paid by manufacturers.

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