Islamabad: Cement sales in Pakistan extended their decline into the 11th consecutive month, with a 6.81% drop in July 2024. This continued decrease reflects ongoing challenges within the sector, including heightened taxes and rising input costs which have dampened domestic demand, despite a notable improvement in exports.

According to Zameen.Com, the All Pakistan Cement Manufacturers Association reported that total cement dispatches fell to 3.010 million tons in July 2024, down from 3.230 million tons in the corresponding month last year. The domestic market experienced a significant reduction in dispatches, which decreased by 11.41% to 2.463 million tons, whereas exports rose by 21.65%, amounting to 547,162 tons.

The regional analysis shows a disparate impact across different areas. North-based cement mills saw an 11.40% decline in dispatches, totaling 2.192 million tons, while South-based mills recorded an 8.20% increase to 817,799 tons. In terms of exports, North-based mills faced an 18.79% decrease, contrasting sharply with a 36.67% increase in exports from South-based mills.

The spokesperson from the All Pakistan Cement Manufacturers Association emphasized the strain of increased taxes and input costs on the sector. They called for a reevaluation of tax policies to better support the industry, particularly criticizing the complexity of sales tax requirements imposed on small retailers, which they believe are unlikely to enhance revenue collection effectively.