Islamabad: Cement dispatches in August 2024 witnessed a significant decline, with a year-over-year drop of 26%, totaling 3.36 million tons due to reduced activity caused by the monsoon season and fiscal policy changes.

According to JS Global, the detailed figures reveal a troubling trend for both domestic and export markets. Domestic dispatches saw a 27% decrease, while exports fell by 15%. The cumulative dispatches for the first two months of the fiscal year 2025 (2MFY25) also reflected a downturn, reporting an 18% decline to 6.37 million tons. The local market bore the brunt of this decline, with a notable 21% decrease in volumes, primarily due to dampened demand during this period. Conversely, exports showed a marginal decrease of 1%.

The sector’s struggle is further illuminated by regional data: Northern local dispatches decreased by 19%, while the southern region saw a more drastic 30% reduction. Notably, the northern export market exhibited a slight growth of 6%, contrasting with the overall negative trend.

The factors influencing these declines include heavy monsoon rains and fiscal measures introduced in the FY25 budget, such as increased Federal Excise Duty (FED), progressive tax rates on property transactions, and a new royalty increase, all of which have stifled construction activities and cement demand. Analysts remain skeptical about the sector’s ability to achieve flat year-over-year sales, citing a need for a monthly growth rate of 4% from this point forward—a challenging target given the current market conditions.