KARACHI: The current fiscal year started on a positive note for the cement sector, which recorded a 45 per cent jump in despatches in July.

Local sales and exports grew 55pc and 2.3pc, respectively.

Growth in cement despatches was despite political turmoil and heavy rains throughout the country. Capacity utilisation in July stood at 86pc.

Local despatches from north-based units were 2.42 million tonnes while their export despatches were 0.33m tonnes in July. In contrast, their local and export despatches remained 1.51m tonnes and 0.30m tonnes in July 2016.

Despatches of south-based mills increased from 0.35m tonnes in July 2016 to 0.48m tonnes last month. Their export despatches fell to 0.13m tonnes from 0.16m tonnes a year ago.

Exports to Afghanistan rose 40pc from 0.15m tonnes in July 2016 to 0.21m tonnes last month. However, this was offset by a decline of 11.6pc and 19pc in the exports to India and other countries by sea, respectively.

The spokesman for the All Pakistan Cement Manufacturers Association (APCMA) said the industry established a record in July by despatching 3.38m tonnes of cement. The sector never posted despatches of more than 3m tonnes in July in the past.

He said the industry operates under a stiff regulatory environment, adding that it has upgraded its technology to face new challenges.

Imported cement cannot compete with the Pakistani product if it is brought into the country at the fair value by paying all levies, he said. However, weak border controls and lax customs vigilance allow entry of cement from across the border, he said.

The spokesman urged the government to lower the excise duty on cement to boost despatches. The duty on coal imported by the sector should be brought on a par with other segments of the economy, he added.

Published in Dawn, August 5th, 2017