Cement sector urges tax relief amid decline in domestic demand

LAHORE: The cement sector has emphasised that 1.94 percent negative growth in local off-take, during the first 11 months of current fiscal year, needs to be seriously examined. Domestic demand plays key role for utilization of idle capacity of the sector as well as for the overall economic development of the country.

The cement industry attracts many allied industries like steel, paint, electrical items etc. and increase in construction activities shall uplift the economy as a whole, said a spokesman of the All Pakistan Cement Manufacturers Association (APCMA) on Tuesday.

The spokesman was optimistic that the government will consider industry’s plea in the upcoming budget and will announce measures to reduce duties and taxes on cement in order to make it affordable for the masses.

Meanwhile, according to the data released by the Association, the domestic cement sales during first 11 months of current fiscal recorded a year over year drop by 1.94 percent. Quantitatively the volumes dropped from 35.1 million tons during July 2023-May 2024 to 34.4 million tons during July 2024-May 2025. Exports, however, recorded an increase by 25.73 percent, resulting the sector to witness a marginal 2.46 percent growth during this 11 months period.

In May 2025, cement despatches increased by 8.57 percent totalling 4.651 million tons against 4.284 million tons despatched during the same month of last fiscal year. Local cement despatches by the industry during the month of May 2025 were 3.662 million tons compared to 3.362 million tons in May 2024, showing an increase of 8.93 percent. Exports despatches also jumped by 7.27 percent as the volumes increased from 0.922 million tons in May 2024 to 0.989 million tons in May 2025.

In May 2025, North based cement mills despatched 3.261 million tons cement showing an increase of 11.87% against 2.915 million tons despatches in May 2024. South based mills despatched 1.39 million tons cement during May 2025 that was 1.54% more compared to the despatches of 1.379 million tons during May 2024.

North based cement mills despatched 3.02 million tons cement in domestic markets in May 2025 showing an increase of 9.71% against 2.753 million tons despatches in May 2024. South based mills despatched 641,894 tons cement in local markets during May 2025 that was also 5.37% more compared to the despatches of 609,174 during May 2024.

Exports from North based mills increased by 48.27% as the quantities increased from 162,929 tons in May 2024 to 241,578 tons in May 2025. Exports from South reduced by 1.53% to 747,856 tons in May 2025 from 759,456 tons during the same month last year.

During the first 11 months of current fiscal year, total cement despatches (domestic and exports) were 42.764 million tons that is 2.46% more than 41.739 million tons despatched during the corresponding period of last fiscal year. Domestic despatches during this period were 34.419 million tons against 35.102 million tons during same period last year showing a reduction of 1.94%. Export despatches, on the other hand, showed healthy increase by 25.73% as the volumes jumped to 8.345 million tons during the first 11 months of current fiscal year compared to 6.637 million tons exports done during same period of last fiscal year.

North based Mills despatched 28.489 million tons cement domestically during the first 11 months of current fiscal year showing a reduction of 1.53% than cement despatches of 28.931 million tons during July 2023-May 2024. Exports from North increased by 9.47% percent to 1.476 million tons during July 2024-May 2025 compared with 1.348 million tons exported during the same period last year. Total despatches by North based Mills reduced by 1.04% to 29.965 million tons during first 11 months of current financial year from 30.279 million tons during same period of last financial year.

Domestic despatches by South based Mills during July 2024-May 2025 were 5.930 million tons showing reduction of 3.90% over 6.171 million tons cement despatched during the same period of last fiscal year. Exports from South increased by 29.88% to 6.868 million tons during July 2024-May 2025 compared with 5.288 million tons exported during the same period last year. Total despatches by South based Mills increased by 11.69% to 12.799 million tons during first eleven months of current financial year from 11.459 million tons during same period of last financial year.