October 7, 2003	Tuesday	Sha’aban 10, 1424

LAHORE, Oct 6: The capacity utilization of cement factories has enhanced to 76.64 per cent in the first quarter of 2003-04

as compared to 68.24 per cent during the same period in 2002-03.

In a statement issued here on Monday, All Pakistan Cement Manufacturers Association (Apcma) chairman Tariq Saigol said that the measures taken by the government to revive economy had begun to yield results as was evident from growth in cement demand during the first quarter of the ongoing year.

He stated total dispatches by the cement sector during first quarter (July-Sept) of 2003-04 stood at 3.2 million tons, including 260,000 tons exported to Afghanistan. It compares to total dispatches of 2.74 million tons — including 79,000 tons sent to Kabul — during the same period last year.

“Certainly the growth in cement demand both in the domestic as well as Afghanistan will indicate healthy increase in expenditure on the infrastructure projects, housing,

and enhanced investments by the private sector. It appears that this growth trend would be sustained through the remainder of the year,” the statement said.

As the demand has grown and capacity utilization enhanced, the cement prices now range between Rs200 and Rs225 per bag depending on brand, and proximity and otherwise

of a particular market from area of production, said the statement.

“This is despite the fact that there has been a rapid increase in international coal prices and larger consumption of coal in countries like Japan,” it said, implying that “cost of production did not allow the manufacturers to further reduce their prices.”

It said in view of the large capacity still to be utilized, it (the cement industry) will be in a position to fully cater to the rising demands. Although the statement did not say it, it implied that the cement producers were opposed to the proposed revival of a public sector cement unit by the government for stabilizing and bringing down the prices.

The statement also said the increase in demand had “vindicated its stand that reduced rate of taxes with better monitoring could lead to larger revenue generation.”

“Even though the excise duty on cement has been slashed in the budget for 2003-04 by 25 per cent, the government’s revenues have registered an increase. It is hoped that the excise duty would be abolished next year for the benefit of consumers,” it said.