The local demand for cement in Pakistan has been continuously declining in Pakistan for the past 12 months.
According to the All Pakistan Cement Manufacturers Association (APCMA), Pakistani cement producers sold 3.366 million tons of cement in August. Compared to August 2023, cement sales in August 2024 decreased by 25%.
As per APCMA, local consumption of cement in August dropped by 27.5% to 2.75 million tons, while cement exports declined by 16%, reaching 613,000 tons.
An APCMA spokesperson stated that local demand for cement has been consistently falling for the past 12 months. Cement consumption is being impacted by heavy taxes and economic uncertainty.
The spokesperson added that, along with significant increases in other federal and provincial taxes, excise duty on cement was doubled in the budget.
No other business has been taxed at such a high rate, and the government should reconsider these taxes.
The spokesperson also said that declining construction activities have caused a continuous decrease in local cement demand.
In the first two months of the current fiscal year, the cement sales were down by 18%, with total consumption in July and August amounting to 6.375 million tons.
According to the APCMA, the local demand for cement in the first two months fell by 20% which reached 5.2 million tons while the cement exports declined by 1.6%, with total 1.16 million tons.
