The fiscal year 2010-11, recently concluded, proved to be a nightmare for the cement sector as 80 per cent of the cement manufacturers suffered huge losses on the back of stagnant local consumption and government failed to honour its commitment for payment of inland freight subsidy that could have boosted exports. This was stated in a press release issued by All Pakistan Cement Manufacturers Association (APCMA) on Tuesday.
Cement consumption declined by 8.24 per cent during the fiscal year 2010-11 as compared to the last year, which has rung alarm bells for the industry and planners of the country. Cement dispatches for FY 2010-11 reveal that capacity utilisation of the industry was at its lowest at 76.12 per cent in past eight years with total dispatches declining by 6.68 per cent to 21.97 million tons, down from 23.55 million tons in 2009-10. Low consumption of cement mirrors low growth of GDP of the economy.-PR