KARACHI: The cement industry has gone in for capacity expansion from 44 million tons to 60 million tons within a couple of years to meet the massive rise in domestic demand due to China-Pakistan Economic Corridor (CPEC) and other public sector projects, said Chairman All Pakistan Cement Manufacturers Association (APCMA), Sayeed Tariq Saigol, here on Wednesday.
The APCMA Chairman said the rise in domestic demand has improved cement industry's capacity utilisation. However, he said suggestion by some quarters for the removal of import duty based on current trend would not be a wise decision.
He said abolishing import duty will not only hurt investments by existing manufacturers and new entrants but also endanger livelihood of workers.
He stressed that the cement industry has been among the highest contributors to the national exchequer over the last four years, as it paid Rs. 189 billion in taxes.
The contribution more than doubled from Rs. 39 billion in 2012-13 to about Rs. 83 billion in 2015-16.
The APCMA emphasised upon the need for cutting duties and taxes to bring down prices, which, he said, would facilitate consumers and also help in the industry's growth.
He said though there is a strong growth in cement despatches, a continuous decline has been recorded in exports over the last few years.
"The country exported 8.57 million tons of cement in 2012-13 which has gradually dropped about 46 percent to 5.87 million tons in 2015-16. However, the rise in local consumption helped the industry to stay afloat," he added.
He said the factors contributing to decline in exports include increase in fuel prices and other input cost, and the most damaging was the barriers placed by some countries to promote local industries.
He urged the authorities to support the industry by placing anti-dumping duty on Iranian cement and decreasing taxes to make it more affordable to consumers.
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