Islamabad: Pakistan's cement industry is facing a protracted downturn, with July 2024 marking the 11th consecutive month of declining sales, as per recent industry data. This continued trend highlights broader economic challenges within the sector.

According to Zameen.Com, the All Pakistan Cement Manufacturers Association reported that total cement dispatches in July 2024 fell by 6.81% to 3.010 million tons, down from 3.230 million tons in the same month last year. The decline was particularly noticeable in local cement dispatches, which dropped 11.41% year-over-year to 2.463 million tons. Conversely, exports presented a silver lining, increasing by 21.65% to 547,162 tons, reflecting stronger international demand.

The regional analysis paints a mixed picture. North-based cement mills experienced a significant reduction in dispatches, with a reported 11.40% decrease to 2.192 million tons. South-based mills, however, reported an 8.20% increase in dispatches to 817,799 tons. This disparity extends to export performance as well, where North-based mills saw a decline of 18.79% in exports, while South-based mills enjoyed a substantial 36.67% increase.

The industry spokesperson attributed the downturn in domestic dispatches to a combination of higher taxes, rising input costs, and sluggish economic activity. They criticized the government’s current taxation policies, suggesting that these were adding financial strain to an already beleaguered sector. The association called for a reevaluation of these policies to support the industry, particularly criticizing the complex sales tax requirements imposed on small retailers which they believe are unlikely to significantly boost government revenue.