LAHORE: Cement despatches declined by 6.81% in July 2024 showing declining trend for consecutive 11 months due to sluggish economic activity in the country.
Total Cement despatches during July 2024 were 3.010 million tons against 3.230 million tons despatched during the same month of last fiscal year, shows the monthly data released by the All Pakistan Cement Manufacturers Association on Saturday.
The local cement despatches by the industry during the month of July 2024 were 2.463 million tons compared to 2.780 million tons in July 2023, showing a decline of 11.41%. On the exports side, despatches increased by 21.65% as the volumes jumped from 449,792 tons in July 2023 to 547,162 tons in July 2024.
In July 2024, North based cement mills despatched 2.192 million tons cement showing a decline of 11.40% against 2.474 million tons despatches in July 2023. On the contrary, south based mills despatched 817,799 tons cement during July 2024 that was 8.20% more compared to the despatches of 755,824 tons during July 2023.
June cement despatches decline 12.58pc to 3.55m tons YoY
North based cement mills despatched 2.093 million tons cement in domestic markets in July 2024 showing a decline of 11.01% against 2.352 million tons despatches in July 2023. South based mills despatched 369,557 tons cement in local markets during July 2024 that was also 13.62% less compared to the despatches of 427,847 during July 2023.
Exports from North based mills declined by 18.79% as the quantities reduced from 121,814 tons in July 2023 to 98,920 tons in July 2024. Exports from South based mills however increased by 36.67% to 448,242 tons in July 2024 from 327,977 tons during the same month last year.
All Pakistan Cement Manufacturers Association (APCMA) emphasized that higher taxes and increasing input costs are seriously affecting cement sector of the country. He added that this is the 11th straight month during which domestic despatches are showing declining trend due to sluggish economic activity in the country.
Cement industry urges the government to review its taxation policies in order to reduce the burden of heavy taxes on this important sector of the economy. “We support documentation drive of the government but forcing very small retailers to register in a complicated sales tax system and installing PoS is not likely to yield any additional sales tax revenue as cement being a 3rd Schedule item, whole amount of sales tax on consumer price is already being paid by the manufacturer,” added a spokesman of the Association.
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