Local cement despatches during February 2014 were 2.135 million tons that is highest ever in the history, depicting a growth of 8.70 percent compared with corresponding month of last year. Revealing the performance of cement sector, spokesman of All Pakistan Cement Manufactures Association (APCMA) said during the first eight months of current fiscal year local cement despatches stood at 16.274 million tons that were the highest ever in the country depicting a growth of 2.9 percent compared with corresponding period of last fiscal year during which the local despatches were 15.814 million tons.
"We are getting healthy demands from the domestic market," he maintained, adding that during February the local despatches increased to 1.76 million tons in northern areas against average of 1.67 million tons achieved during the previous seven months of current fiscal year. In the southern region, the local despatches were 369,000 tons during February '14 compared with 349,000 tons average despatches per month from July 13 to January 14.
During the month of February 2014, exports from north declined to 381,000 tons against 445,000 tons during same month of last year. Exports from south also declined to 202,000 tons during February 2014 against 209,000 tons during corresponding month of last year. Total exports from the country declined by 2.01 percent, counting to 5.292 million tons during the first eight months of current fiscal year compared to 5.400 million tons during the same period of last fiscal year.
From July 13 to February 14 Afghanistan market declined by 15.29 percent and cement sector was able to export only 2.487 million tons to Afghanistan. Exports to other destinations through sea, however, increased by 14.60 percent to 2.513 million tons during this period compared to 2.193 million tons during the same period of last fiscal year.
APCA spokesman deplored that the issues impacting cement sector have still not been addressed by the government. In last budget, cement has been brought within the purview of '3rd Schedule' of Sales Tax Act 1990 that has increased the overall tax burden and has resulted in increase in the local prices. Considering the cement dynamics, industry wants government to reconsider its decision and remove cement from 3rd Schedule and to bring it in the normal sales tax regime. This will help industry to reduce prices which will help to accelerate construction activities across the country, he said, adding that the cost of transportation has increased substantially because of diesel rates as well as the restriction on the trucks to load cement and coal according to the approved axle weight.
Industry circles have appealed the government to engage India on talks to remove non-tariff and technical barriers to export cement from Pakistan. They said withdrawal of Nato forces from Afghanistan is on the cards and uncertainty has started creeping in the Afghan market which is the reason for low exports to that country.
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