Lahore, Pakistan – The cement industry in Pakistan is facing a severe downturn, with dispatches plummeting by 25.68% in August 2024 due to unprecedented tax hikes.
According to the All Pakistan Cement Manufacturers Association (APCMA), total cement dispatches during August 2024 were 3.366 million tonnes, a significant decline from 4.528 million tonnes in the same month last year. Both domestic and export markets have been impacted by the reduced demand.
Domestic dispatches fell by 27.54% to 2.752 million tonnes in August 2024. Exports also declined by 16% to 613,857 tonnes during the same period. Cement mills in the North and South regions of Pakistan experienced significant drops in dispatches, with declines of 22.20% and 34.54%, respectively. Tribune
The APCMA spokesperson attributed the decline in dispatches to a combination of factors, including higher taxes, economic uncertainty, and heavy monsoon rains that disrupted construction activities. The spokesperson urged the government to reconsider its taxation policies, arguing that the cement industry has been disproportionately burdened by recent tax increases.
The continued decline in cement dispatches over the past 12 months has raised concerns about the impact on the construction sector, which is a key driver of employment and economic growth in Pakistan.
