June 12, 2024 (MLN): The capacity utilization of Pakistan's cement industry dropped to 54.64% during fiscal year 2023-24 (July-April), its lowest level since at least 17 years, revealed the Economic Survey 2023-24 on Tuesday.
Despite an overall production capacity of 82.25 million tonnes, the total dispatches, including domestic and exports totalled just 37.45m tonnes during the first 10 months of FY24.
"The cement industry in Pakistan has faced multiple challenges," stated the Economic Survey 2023-24.
"The government’s fiscal constraints and limited foreign aid have delayed rehabilitation efforts in flood-affected areas and caused the overall slowdown of the construction sector.
"Additionally, the economic slowdown in global markets has resulted in lower cement exports to significant export destinations like Sri Lanka and Bangladesh, which have foreign exchange crises.
"Besides, the industry has also been impacted by the massive increase in prices of construction materials."
Currently, Pakistan's cement industry exports its cement and clinker to Afghanistan, Sri Lanka, Maldives, Djibouti, Somalia, Tanzania, Kenya, Uganda, Mozambique, South Africa, Madagascar, Comoros, Seychelles, Iraq, Ethiopia, Qatar, and the USA, according to the Economic Survey.
