Karachi, Cement sector remained under financial pressure during fiscal year 2011-12 due to increase in its input cost mainly, electricity, diesel, paper sack, gypsum and Pak rupee devaluation. For year 2011-2012, local cement dispatches were highest ever in country’s history.
All Pakistan Cement Manufacturers Association APCMA spokesman Wednesday said local cement dispatches increased to record level of 23.947 million tons registering 8.84% increase. However, exports remained under pressure throughout the year and declined by 9.12% to 8.568 million tons and 2011-12 was third straight year when exports declined.
He said cement sector added 3 million tons additional production capacity in year 2011-12 and total production capacity increased by 7.23% to 44.217 million tons from 42.235 million tons in 2010-11. For year 2011-12 capacity utilization remained under pressure due to sluggish export demand, non revival of construction sector, lack of investment in housing sector and government inability to initiate mega projects.
He said from peak level of 10.752 million tons achieved in 2008-09, exports now decreased to 8.568 million tons in year 2011-2012 showing 20.4% decline. The hype created on trade with India so far not materialized and export in that market was only 0.605 million tons in 2011-12 which is well below expectation. However, Afghanistan market remained stable and cement exported was 4.715 million tons in 2011-2012. Exports to other destinations through sea excluding India declined to 3.247 million tons showing 17% reduction, he added.