KARACHI: The cement industry utilised over 93 per cent of its installed capacity in July-October, according to a spokesman for the All Pakistan Cement Manufacturers Association (APCMA).

This was the highest capacity utilisation in the last 20 years.

However, a capacity of 1.08 million tonnes still remained idle, which could have been utilised if the government adopted export-friendly policies, he said.

Total cement despatches in the first four months of 2017-18 surged 16.53pc to 14.57m tonnes year-on-year. Exports fell 16pc over the same period.

In October, total cement despatches surged 19.7pc to 4.22m tonnes from a year ago.

Due to high local demand, sales in October rose 25.6pc to 3.78m tonnes year-on-year while exports dropped 14.55pc to 0.44m tonnes.

Higher cement consumption is the sign of a growing economy. It has a positive impact on more than three dozen industries that are connected with the construction sector, the spokesman said.

The decline in exports is worrisome as the industry still has idle capacity, he said.

He added that the major decline is in exports via sea while exports to India were not affected to a large extent.

He said cement demand in the north zone remained surprisingly high. Cement consumption in the region stood at 3.15m tonnes during October. It was for the first time that the north zone consumed more than 3m tonnes of cement in a month. In October 2016, the domestic cement consumption in the north zone was 2.49m tonnes.

He said cement demand in the south region also increased from 0.52m tonnes in October 2016 to 0.63m tonnes last month.

The APCMA spokesperson said the industry is operating in a stiff regulatory environment and is surviving only because it has upgraded its technology to face challenges head-on.

Weak border control and lax customs vigilance allow the entry of cement from across the border at unfair valuations, hurting the local cement industry, he added.

He urged the government to lower the excise duty on cement to boost demand. The duty on coal imported by the sector should also be brought on a par with other sectors, he added.

Published in Dawn, November 4th, 2017