LAHORE-The cement sector is posting continuous growth this fiscal, recording highest ever monthly despatches of 5.735 tonnes in October 2020.
The local uptake of cement in October 2020 increased by 15.83 percent to 4.859 million tonnes from 4.195 million tonnes in October 2019 while exports registered an increase of 11.58 percent, increasing to 875,266 tonnes from 784,433 tonnes in the same month last year.
In the north region, domestic cement despatches increased by 15.53 percent to 4.165 million tonnes during October 2020 from 3.605 million tonnes in October 2019. Exports from the north increased by 8.54 percent to 0.283 million tonnes in October 2020 from 0.261 million tonnes in October 2019.
There has been a positive growth in the southern region as well where the domestic cement despatches increased by 17.70 percent to 695,221 tonnes from 590,690 tonnes in October 2019. Exports from the south continued to grow and increased by 13.09 percent to 591,877 tonnes in October this year from 523,353 tonnes in October 2019.
In the first four months of this fiscal year, 19.321 million tonnes of cement was despatched, which is 19.89 percent higher than the first four months of last fiscal year.
Total cement despatches during the first four months of current fiscal year increased by 19.89 percent to 19.321 million tonnes from 16.116 million tonnes in July-Oct 2019. Domestic despatches registered a healthy increase of 17.94 percent, increasing from 13.315 million tonnes to 15.704 million tonnes. Exports also showed encouraging growth increasing by 29.15 percent from 2.8 million tonnes to 3.617 million tonnes.
In the South (Sindh-Baluchistan), the domestic growth remained healthy at 12.08 percent as consumption in the first four months increased from 1.860 million tonnes to 2.085 million tonnes this year. The exports from South posted a growth of 46.56 percent in the first four months of this fiscal which increased to 2.712 million tonnes from 1.85 million tonnes during Jul-Oct 19.
A spokesman of All Pakistan Cement Manufacturers Association said that the cement consumption could increase further if the government rationalizes duties and taxes and withdraw excise duty. He said the government would generate higher revenue even with reduced taxes when cement sales increases.