04 July 2004	Sunday	15 Jamadi-ul-Awwal 1425

LAHORE, July 3: All Pakistan Cement Manufacturers Association (APCMA) chairman Tariq Saigol on Saturday said the demand for cement continued to surge in the last quarter of the last fiscal year as a result of positive developments in construction of infrastructure projects and the housing sector.

In a statement issued here, he said during the last quarter of the last fiscal year, capacity utilization including exports to Afghanistan and UAE recorded 90.27 per cent increase from 82.09 per cent in the previous quarter.

In aggregate terms, total cement sales in the domestic market stood at 12.516 million tons during the year showing a 14 per cent increase over the previous year and exports stood at 1.118 million tons recording 160 per cent growth over the previous year. "Total dispatches of cement including exports were 13.634 million tons, which aggregates to a percentage growth over the previous year of close to 20 per cent. The total capacity utilization as predicted exceeded 80 per cent at 80.70 per cent. This is a most healthy sign and reinforces the government's claim that the economy is firmly on the move," the statement said.

He said the cement industry was gearing up for a major capacity expansion and was confident that the balancing and modernization and the new capacity in the pipeline, would ensure that no shortages of this essential commodity occur. The present installed capacity of around 17 million tons would rise by over two million tons during the current year and as new plants came into operation in 2005-2006, further enhancement in capacity will take place to cope with increasing demand at home and abroad.

The new budget, he said, gave a mixed bag of reliefs and disappointments, but overall it was a positive one.

Mr Saigol said buoyant demand, increase in coal and furnace oil prices and shortage of natural gas had put price pressures but the industry was responding favourably by increasing its output so it is hoped abundant supplies would keep the price line in control. Efforts would be made to ensure adequate supplies of this essential commodity continue to reach the markets.