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Cement industry in Pakistan – Opportunities and challenges

The cement industry is excelling in Pakistan due to its high demand. Cement consumption, as well as exports, are rising domestically since after the resumption of all the business activities that are facing a decline due to the coronavirus pandemic.

Cement is one of the most significant and widely used materials in order to make a building or any infrastructure in the modern age. Cement is used to make the structures of the buildings, bridges, roads, etc. Due to the high consumption of cement each year the development is reported along with the progress also in the socio-economic growth.

According to the sources Pakistan has a well-developed and successfully running cement industry with the availability of abundant raw material. However, Pakistan is the 14th largest cement producer worldwide and also ranked among the top 5 exporters of cement in the world.

History of Cement Industry in Pakistan

The concrete cement business of Pakistan has made considerable progress since 1947. Following Partition, the yearly creation of concrete in the nation was 300,000 tons each year and the complete or total installed capacity introduced a limit that was 470,000 tons for every annum.

The primary concrete manufacturing plant, set up in 1921, around there, that is presently Pakistan, was at Wah, Punjab.

According to the sources, by the year 1954, it all became clear that the demand for this concrete cement was much higher than the installed capacity. However, 1 Million tons was the requirement for annual dealing but only over 660,000 tons were being supplied.

Moreover, in order to cater to the production shortage, the PIDC- Pakistan Industrial Development Corporation took the initiative of expanding the production capacity in the country by taking all the measures to meet the required level.

Sales and Growth or Cement Industry in 2021

The cement industry in Pakistan is one of the high contributors to the overall growth of the economy of the country. However, the sales of the cement industry rose as per the data shared by the APCMA- All Pakistan Cement Manufacturers Association.

As per the report shared by APCMA, the cement sales in Pakistan came as total at 5.37 Million tons in March 2021 right against the sales of 3.72 Million tons that were recorded in the same month of the previous year.

The Cement Mills that are based in the Southern regions have sold around 753,704 tons of cement in the domestic market only that is 62.28% higher than the sales of 464,440 tons that was recorded in March or the previous year, 2020.

The cement industry is flourishing due to the high demand in the domestic markets and also the exports from the mills are recorded high. The exports in the northern region have soared at 162.58% that is just going up right from 106,759 tons in March 2020 to the level of 280,330 tons in the March of the current year of 2021.

There are many opportunities in this cement industry; however, where there are opportunities, there are challenges also. The cement Industry growth has also created many opportunities for employment in the country as thousands of people are working in this industry in order to meet the requirement and demand.

Cement Industry Jobs in Pakistan

Cement industry plants are set in many areas of the country; however, thousands of new opening for vacancies are opened every year where people from different cities also applied to get the job in the growing industry.

As per the reports shared by APCMA, there are currently 24 operational cement plants in Pakistan. Online job openings are also available in this industry for different cities that people can check if they are in search to get a job here.

List of Cement Industry in Pakistan

There are integrated about 27 integrated plants of cement in Pakistan. Many giant groups are working in this industry; however, the cement companies in Pakistan are as follows:

Lucky Cement Ltd.
Bestway Cement Ltd.
Fauji Cement Company Ltd.
Anwarzaib White Cement Ltd.
DG KhanCement
Attock Cement Pakistan Ltd.
Fecto Cement Ltd.
Dewan Cement
Cherat Cement Company Ltd.
Thatta Cement Company

There are many other cement companies located in Pakistan that have their producing plant in the country. Overall the whole industry has many challenges to face in the country for which strategies are designed to resolve all the hurdles in the way.

Cement industry in Pakistan- Opportunities

Currently, Pakistan is experiencing the fastest-growing urbanization in Asia; however, the studies have shown that more than half of the population of the country will be living in the cities and not in the small villages where the resources are limited.

The housing schemes are announced on a continual basis by the Prime Minister, it is mostly for the people belonging to the lower class but they are also getting the advantage to grow.

The cement industries are flourishing due to the more projects signed and built by the government in terms of making the housing societies where the cement is the most essential item to be used.

Not only the housing schemes but the CPEC infrastructures have also created a huge demand for cement because of its high consumption; however, this industry that is already working as a national contributor to the economy has got an advantage to grow even more.

The cement manufacturers are seeing a new opportunity in the industry with CPEC and other ongoing projects which have already got legal approval.

According to the latest update by the official source, the cement producers of Pakistan have planned to expand the production capacity by more than about 40% that is from 69 Million tons to about 99 million tons in the upcoming years.

It has been forecasted that the growth rate will also increase by 10 to 15% by increasing sales annually. These official statements are shared by the APCMA.

More production will also raise the export; whereas the CPEC projects that are already installed will also require the high consumption of cement.

The employment is also expected to get a high boost that will also affect the economy in a positive way where many of the unemployed Pakistanis will get the opportunity to work with the CPEC projects and also for the cement industry where while increasing the capacity or cement plants will require more labor to work for its production.

According to the CEO of one of the top Cement Company Bestway Cement, “CPEC will surely ensure that the economy will boost or grow at a faster pace by generating employment as well as the business opportunities for many of the other industries and also the cement industry that will also be at the helm of it.”

Cement industry in Pakistan- Challenges

Due to the new projects, the beneficial opportunities for the economy are great by the cement industry in Pakistan; however, there are some challenges that the industry has faced and usually faces. The pandemic has also created a lot of hurdles in the industry due to the lockdown and uncertain interruption in the exports.

The cement industry in Pakistan faces the challenges like the ones that are on the domestic front and also owing to the flatness in demand; meanwhile, currently, this challenge is not an issue for the industry because the growth is high.

The currency depreciation is also one of the major challenges that hit the whole cement industry and also the other industries of the country. The high markups and the price completion are also the major challenges that affect the whole industry.

The high demand for cement has made all the possible opportunities to make the most benefit of it and the challenges are not currently with the industry but the specific companies that are facing a challenge to compete with the rivals in the industry.

Growth of Cement Industry in Pakistan

According to the sources, the growth rate of 40% has been recorded in the current year of 2021; whereas, it is anticipated to grow more with the passage of time and in the next years because of the high demand.

The growth of the cement industry recorded in April 2021 is about 40.4% that is when the total cement dispatches have reached about 4.94Mt as comparing to the 3.52Mt that was during the same month of 2020.

More opportunities are expected to grow in this sector of cement where the demand and the requirement will soon raise due to the upcoming projects not only in a single province but in the different provinces of the country.

The contribution of this sector is prominent in the country where the stats are clearly towards the bright as well as the successful side of growth. The exports of various goods are also increasing in Pakistan where the overall export rate has increased in 2021.

The cement export rate is also expected to grow more which will not only help in financial terms but also make strong ties with the other foreign countries where the export of cement is made.

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