Pakistan reported on November 11 that from July to October 2015, Pakistan's cement exports were about 5.25 million tons, down 27% from the same period last year. Rising local demand and increasing external competition are the main reasons for the decline in exports.
According to Shahzad Ahmed, chief Secretary-General of the All Pakistan Cement Manufacturers' Association (APCMA), Pakistan currently has an annual cement production capacity of 45.62 million tons, 81% of which is in the north and 19% in the south. Pakistan's domestic cement demand in fiscal year 2014-15 is 28.2 million tons, accounting for 62% of the total production capacity, so 17.42 million tons of production capacity are available for export.
At present, Pakistan's cement exports are facing competition from manufacturers in Iran, the United Arab Emirates and India, and are gradually losing competitiveness due to high production costs. Shahzad appealed to Pakistan's Ministry of Industrial Production (MOIP) that the government should pay attention to the decline in exports of various industries, including cement, and take measures to promote exports, such as abolishing coal import tariffs, reducing energy costs, providing freight subsidies for exports or direct subsidies for enterprises. Otherwise, falling exports could lead to underutilization of capacity and further damage to industrial sectors such as cement.
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