Karachi: The cement industry recorded subdued dispatches in the first quarter of fiscal year 2025, with a total of 10.3 million tons, marking a 13% decline year-over-year. This downturn was primarily due to significant drops in local dispatches, somewhat offset by gains in export volumes.

According to JS Global, September 2024 alone saw cement dispatches tally at 3.9 million tons, reflecting a 5% decrease from the previous year. Local dispatches plummeted by 18% year-over-year, while exports experienced a substantial 72% improvement during the same period. Despite the positive trend in exports, the overall local volume decrease of 20% year-over-year due to weakened demand heavily influenced the quarterly figures.

Further compounding the sector’s challenges are the fiscal measures introduced in the Federal Budget for FY25, which include a higher Federal Excise Duty (FED) and progressive tax rates for property transactions, along with a royalty imposed by the Punjab government on cement. These initiatives are expected to suppress growth in cement demand in the short term. However, JS Global maintains a positive long-term outlook for the sector, anticipating margin gains from cost efficiencies and reduced interest costs due to the monetary easing cycle.