Cement sales slip 6.6pc as subdued construction activity persists

Published April 6, 2025
Cement manufacturers have urged policymakers to consider reducing taxes and duties on cement in the upcoming federal budget to make it more affordable for people and stimulate domestic demand.—AFP/File
Cement manufacturers have urged policymakers to consider reducing taxes and duties on cement in the upcoming federal budget to make it more affordable for people and stimulate domestic demand.—AFP/File

KARACHI: Construction activity remained subdued during the first nine months of the current fiscal year, with local cement sales dropping by 6.6 per cent to 27.46 million tonnes, compared to 29.4m tonnes in the same period last year.

However, exports showed a significant improvement, rising by 28pc to 6.53m tonnes from 5.1m tonnes year-on-year, according to data released by the All Pakistan Cement Manufacturers Association (APCMA).

Total cement despatches — including both domestic sales and exports — stood at 33.99m tonnes during July-March FY25, down 1.48pc from 34.5m tonnes in the year-ago period.

North-based cement mills recorded domestic despatches of 22.79m tonnes during the nine-month period, a decline of 6pc from 24.24m tonnes in the same period last year. Exports from the North rose by 7.8pc to 1.12m tonnes, up from 1.039m tonnes.

Exports jump 28pc to 6.53m tonnes in July-March

Total despatches from the North decreased by 5.4pc to 23.91m tonnes, compared to 25.28m tonnes in July-March.

In the South, domestic despatches declined by 9.6pc to 4.67m tonnes from 5.17m tonnes in the corresponding period of last fiscal year. In contrast, exports surged by 33.3pc to 5.42m tonnes from 4.06m tonnes.

Total despatches from South-based mills increased by 9.3pc to 10.08m tonnes, up from 9.23m tonnes.

In March 2025, domestic cement despatches dropped by 11.3pc to 2.96m tonnes, compared to 3.34m tonnes in March 2024.

Export volumes remained largely flat at 608,614 tonnes compared to 605,142 tonnes in the same month last year. Total despatches for the month fell by 9.5pc to 3.57m tonnes from 3.94m tonnes in March 2024.

A spokesman for the APCMA emphasised the importance of cement as a core driver of economic activity, noting its role in providing both direct and indirect employment across multiple sectors.

He said cement is a vital commodity and supports thousands of skilled and unskilled workers, along with many allied industries.

“We are optimistic that policymakers will consider reducing taxes and duties on cement in the upcoming budget in order to make the commodity affordable to the masses, thereby increasing domestic off-take,” he added.

Published in Dawn, April 6th, 2025

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