LAHORE, Aug 21: The cement production in the country has gone up by nine per cent in the first two months of fiscal 2003-04 as a result of budgetary incentives given by the federal government to boost the construction industry.

Officials of the State Cement Corporation of Pakistan say in spite of increase in sales, a lower consumption and huge surplus capacity of cement in the country is still a big problem for the industry.

At present, 14 cement factories are running in private sector. Another two cement factories out of four in the public sector are producing cement. Their total production capacity stands at around 18 million tons against a total consumption of around eight million tons.

Another four new cement factories are in the pipeline which would push the production up to 20 million tons.