In March 2023, Pakistan’s cement mills dispatched a total of 3.795 million tonnes of cement, down by 24.2% from 5.01 million tonnes in the previous fiscal year. According to a spokesperson from the All Pakistan Cement Manufacturers Association (APCMA), the decline is due to decreased construction activity in both northern and southern regions of the country. This situation is negatively affecting the cement industry, as well as skilled and unskilled labor employed in the construction sector. Other factors contributing to the decline include political instability, currency devaluation, and poor economic conditions.
Local cement dispatches in March 2023 were 3.356 million tonnes, a decrease of 28.8% compared to 4.71 million tonnes in March 2022, while export dispatches increased by 48.5% to 438,433 tonnes from 295,321 tonnes in March 2022. Northern cement mills dispatched 2.82 million tonnes of cement in March 2023, down by 28.2% from 3.929 million tonnes in March 2022, while mills in the south dispatched 974,467 tonnes, a decrease of 9.5% from 1.076 million tonnes in March 2022.
In terms of domestic dispatches, northern cement mills delivered 2.72 million tonnes of cement in March 2023, a decline of 29.3% compared to 3.849 million tonnes in March 2022. Southern mills supplied 636,465 tonnes of cement in local markets in March 2023, down by 26.1% from 861,742 tonnes in March 2022. However, exports from northern mills increased by 24.6% to 100,431 tonnes in March 2023 from 80,584 tonnes in March 2022, while exports from the south increased by 57.4% to 338,002 tonnes from 214,737 tonnes during the same period.
During the first 9 months of the fiscal year 2022-23 (9MFY22-23), total cement dispatches (domestic and exports) were 33.6 million tonnes, which is 17.6% lower than the 40.77 million tonnes dispatched in the same period of the previous fiscal year (9MFY21-22). Domestic dispatches in 9MFY22-23 were 30.56 million tonnes, down by 15.4% from 36.13 million tonnes during the same period the previous year, while export volumes fell by 34.6% to 3.036 million tonnes from 4.643 million tonnes in the previous fiscal year.
Mills in the northern region of Pakistan dispatched 25.047 million tonnes of cement domestically during the 9MFY22-23, a reduction of 16.3% compared to 29.937 million tonnes in 9MFY21-22. Exports from the north increased by 14.56% year on year to 778,437 tonnes in 9MFY22-23 from 679,481 tonnes. Total dispatches by north-based mills declined by 15.7% to 25.826 million tonnes in 9MFY22-23 from 30.617 million tonnes in the previous fiscal year.
Domestic dispatches by south-based mills during 9MFY22-23 were 5.517 million tonnes, a reduction of 10.9% over the 6.189 million tonnes dispatched during the previous fiscal year. Exports from the south declined by 43.1% to 2.257 million tonnes in 9MFY22-23 compared with 3.964 million