Cement sales jump 41pc in May

ISLAMABAD: The cement sector recorded excellent growth of 49.86 per cent in May 2021 as total sales reached 3.947 million tons against 2.634 million tons in the same month of the previous fiscal year.

According to the data released by All Pakistan Cement Manufacturers Association, domestic cement despatches during May 2021 rose to 3.2 million tons against 2.27 million tons in May 2020, showing a healthy growth of 40.95pc. 

Similarly, exports also massively increased by 105.56pc, up from 363,174 tons in May 2020 to 746,550 tons in May 2021.

Cement mills based in northern Pakistan sold 2.71 million tons of cement in domestic markets, an increase of 35.55pc over two million tons sold in May 2020. Similarly, the mills based in the south recorded 81.15pc growth in sales as they shipped 487,311 tons to the local market in May 2021. These mills had dispatched 269,003 tons in May 2020.

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Due to Covid-driven issues, mills in the northern part of the country exported only 7,520 tons in May 2020, however, exports from north-based mills increased to 203,625 tons in May 2021.

Meanwhile, South-based mills sold 487,311 tonnes in domestic markets during May, registering a robust jump of 81pc compared to 269,003 tonnes in the same period last year. Exports from South also posted a growth of 53pc to 542,925 tonnes in May 2021 from 355,654 tonnes during the same month last year.

During July-May 2020-21 (11MFY21), total cement dispatches (domestic and exports) grew by 21pc to 52.222m tonnes versus 43.189m tonnes during the corresponding period of last fiscal year.

Local despatches rose by 20.26pc to 43.451m tonnes in 11MFY21 from 36.13m tonnes in the same period last fiscal year. Exports increased from 7.059m tonnes during 11MFY20 to 8.771m tonnes during the same period on FY21 – up 24.25pc.

During the 11 months under review, the mills based in the northern region shipped 36.72 million tons of cement to the local market, up 18.67pc from 30.94 million tons in the same period of last year.

According to an APCMA spokesman, the cement industry is among the highest contributors to the national exchequer as its contribution has increased to Rs143 billion in FY20.

“The industry is subject to FED of Rs1,500 per ton and GST of 17pc of the maximum retail price and these taxes calculate to around Rs170 per bag,” he said, adding that besides FED, the industry also pays customs duty and taxes on machinery, spare part imports and on import of coal and pet coke.

The APCMA official urged the government to abolish the FED and reduce other duties and taxes to provide an opportunity to the manufacturers to control their cost of production and further optimise and expand their plant that will in turn help generate more employment and revenues for the government.

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