LAHORE - The cement exports have grown by 42 percent year-on-year in May as local currency depreciation has increased competitiveness of the local industry in international market.

According to the data of All Pakistan Cement Manufacturers Association (APCMA), exports from north-based cement mills were 0.22 million tons in the last month as against 0.22 million tons in May 2017. Exports from south-based cement makers stood at 0.22 million tons in May as compared to 0.09 million tons a year ago. In May, local sales from northern region were 2.812 million tons as against 2.811 million tons in the same month a year earlier, whereas dispatches from the southern region inched up to 0.669 million tons from 0.588 million tons.

APCMA’s spokesman said that continuous increase in exports is a welcome sign for the industry. He said that a major factor behind rise in exports is decline in rupee value against the US dollar that improved competitiveness of cement sector in the global markets. Overall, cement dispatches rose six percent to 3.92 million tons in May as compared to the corresponding month a year ago. Cement dispatches recorded the highest-ever growth of 14.17 percent to 42.915 million tons during the first 11 months of the current fiscal year of 2017/18. Capacity utilisation stood at 94.69 percent in the July-May period. It was recorded at 93.62 percent in 1992/93. Cement exports marginally rose 0.69 percent to 4.348 million tons in the July-May period.

Local cement consumption in the northern parts of the country stood at 31.811 million tons in the July-May period, up 16.76 percent over the corresponding period of last fiscal year. South-based factories dispatched 6.755 million tons, depicting a rise of 12.12 percent.

The APCMA urged the government to withdraw the recent increase in federal excise duty (FED), which will hurt local consumption, as this will have an impact of Rs15/bag, thereby raising cost of construction. The industry has been demanding the government for years to abolish the FED as cement is not a luxury item, use of which should be encouraged, he added.