LAHORE: The unprecedented and extremely high tax measures leading to a huge increase in cement prices have caused a decline in demand for cement as the despatches recorded in August 2024 declined by 25.68% as compared to the corresponding period of last year.
The industry recorded a total of 3.366 million tons in August 2024 against 4.528 million tons despatched during the same month of last fiscal year, said a spokesman of the All Pakistan Cement Manufacturers Association (APCMA) on Thursday.
Monthly data released by the Association indicate that the local cement despatches by the industry during August 2024 were 2.752 million tons compared to 3.798 million tons in August 2023, showing a decline of 27.54%. Export despatches also declined by 16% as the volumes reduced from 730,755 tons in August 2023 to 613,857 tons in August 2024.
During the first two months of the current fiscal year, total cement despatches (domestic and exports) were 6.375 million tons which is 17.82% lower than 7.758 million tons despatched during the corresponding period of last fiscal year. Domestic despatches during this period were 5.214 million tons against 6.578 million tons during the same period last year showing a reduction of 20.73%. Export despatches were also 1.65% less as the volumes reduced to 1.161 million tons during the first two months of the current fiscal year compared to 1.181 million tons of exports done during the same period of last fiscal year.
In August 2024, North-based cement mills despatched 2.530 million tons of cement showing a decline of 22.20% against 3.252 million tons despatches in August 2023. South-based mills despatched 835,245 tons of cement during August 2024 which was also 34.54% less compared to the despatches of 1.276 million tons during August 2023.
North-based cement mills despatched 2.325 million tons of cement in domestic markets in August 2024 showing a decline of 24.70% against 3.088 million tons of despatches in August 2023. South-based mills despatched 426,289 tons of cement in local markets during August 2024 which was 39.91% less compared to the despatches of 709,443 during August 2023.
All Pakistan Cement Manufacturers Association (APCMA) spokesman mentioned that the domestic update has continuously shown a negative trend for the last 12 months as the industry is struggling to cope with higher taxes and economic uncertainty in the country whereas heavy monsoon also impacted the construction activities during last month.
“In the current budget excise on cement doubled along with a sharp increase in other Federal and provincial taxes. No other businesses have been taxed in such an enormous proportion.
The government must review the taxation measures as the construction sector is suffering due to a continuous decline in domestic off take, which in turn is hurting the employment opportunities for skilled and unskilled labour putting more pressure on the already struggling economy. We urge the government to address the concerns of the cement industry to bring it out of these difficult times,” he concluded.
Copyright Business Recorder, 2024