In July 2024, cement sales dropped by 6.81%, amounting to 3.010 million tons compared to 3.230 million tons in July 2023, according to data from the All Pakistan Cement Manufacturers Association. Local cement sales fell by 11.41%, reaching 2.463 million tons from the previous year’s 2.780 million tons.
Conversely, cement exports rose by 21.65%, increasing to 547,162 tons from 449,792 tons in July of the previous year. North-based cement mills dispatched 2.192 million tons, marking an 11.40% decline from 2.474 million tons in July 2023. In contrast, south-based mills saw an 8.20% increase, selling 817,799 tons compared to 755,824 tons in the same period last year.
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In the domestic market, north-based mills sold 2.093 million tons, an 11.01% decrease from 2.352 million tons in July 2023. South-based mills dispatched 369,557 tons locally, down 13.62% from the previous year’s 427,847 tons. Export figures for north-based mills also showed a decline of 18.79%, dropping to 98,920 tons from 121,814 tons in July 2023. However, south-based mills experienced a significant export increase of 36.67%, reaching 448,242 tons from 327,977 tons last year.
A spokesman for the All Pakistan Cement Manufacturers Association highlighted that the sector is struggling due to high taxes and rising input costs. He noted that July marked the 11th consecutive month of declining domestic sales, attributed to sluggish economic activities.
The industry has called on the government to reassess its taxation policies to alleviate the heavy tax burden on this crucial sector, which is interconnected with many other industries. The spokesman supported the government’s documentation efforts but criticized the requirement for very small retailers to register in a complex sales tax system and the installation of Point of Sale (POS) machines, arguing it would not generate additional tax revenue.
“As cement is a Third Schedule item, the entire sales tax on consumer prices is already paid by the manufacturers,” the spokesman added.
