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Pak's cement exports to India drop by 39%

December 2012

According to the recent results posted by All Pakistan Cement Manufacturer Association (APCMA), Pakistan's cement exports to India have been declining unabatedly since the two countries unlocked their borders for liberal bilateral trade. Exports to India dropped by a whopping 39 per cent YoY.

The decline in exports to India is not due to feeble demand, but due to stern non-tariff barriers (NTBs) imposed by the Indian government, causing hurdles in the free flow of trade between the two countries. cement sales in Pakistan illustrated an uplift of 3.4 per cent year on year to tally 13.1 million tonne in 5MFY13. This growth mainly comes on the heels of local sales which stood at 9.48 million tonne in 5MFY13, depicting a significant growth of 7 per cent year on year.

While the robust demand from the northern region of Pakistan continued to remain a major contributor to the local sales hike, cement dispatches in the southern areas also demonstrated an uptick of 7 per cent YoY to rest at 1.75 million tonne.

Whereas, the encouraging local uptake proved to be a boon for the cement industry during the period; exports bore out to be a stumbling block, thus ebbing away the overall sales growth.

During the five months period under consideration, cement exports dropped by 4 per cent YoY, mainly on the back of fragile demand from Afghanistan, the major export destination of Pakistani cement, accounting for more than 50 per cent of the total cement exports.

During 5MFY13, exports to Afghanistan plunged by 4 per cent YoY due to economic downturn in the country.

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