Tax reductions can help boost sales: APCMA: Dec domestic cement despatches fall 4.76pc YoY

LAHORE: Referring to a 4.76 percent decline in domestic cement despatches during the month of December 2024, the All Pakistan Cement Manufacturers Association (APCMA) said on Thursday that a reduction of duties and taxes on cement can boost sales and improve the sector.

According to the data released by the All Pakistan Cement Manufacturers Association (APCMA), local cement despatches by the industry during December 2024 were 3.370 million tons compared to 3.539 million tons in December 2023, showing a decline of 4.76%.

Exports despatch, however, increased by 49.35% as the volumes increased from 524,656 tons in December 2023 to 783,550 tons in December 2024. Total cement deliveries during December 2024 were 4.154 million tons against 4.063 million tons dispatched during the same month of last fiscal year, showing an increase of 2.23%.

In December 2024, North-based cement mills dispatched 2.9 million tons cement showing a decline of 3.71% against 3.012 million tons despatches in December 2023. South-based mills despatched 1.254 million tons of cement in December 2024, which was 19.25% more compared to the despatches of 1.052 million tons during December 2023.

North based cement mills despatched 2.786 million tons cement in domestic markets in December 2024 showing a decline of 5.11% against 2.936 million tons despatches in December 2023. South based mills despatched 584,684 tons cement in local markets during December 2024 that was also 3.04% less compared to the despatches of 603,010 during December 2023.

Exports from North-based mills increased by 50.18% as the quantities increased from 75,967 tons in December 2023 to 114,089 tons in December 2024. Exports from the South also increased by 49.20% to 669,461 tons in December 2024 from 448,689 tons during December 2023.

During the first six months of the current fiscal year, total cement despatches (domestic and exports) were 22.933 million tons that is 3.97% lower than 23.881 million tons despatched during the corresponding period of last fiscal year.

Domestic despatches during this period were 18.122 million tons against 20.228 million tons during same period last year showing a reduction of 10.41%. Export despatches were 31.69% more as the volumes increased to 4.810 million tons during the first six months of the current fiscal year compared to 3.653 million tons of exports during the same period of last fiscal year.

Commenting on the figures, APCMA spokesman expressed grave concerns over the continuous decline in local cement demand. He emphasized that local off-take plays a major role in the industry’s economic growth.

“Reduction of duties and taxes by the government can bring the cost of the commodity down, which can boost the sales and enable the sector to use its idle capacity,” he added.

Copyright Business Recorder, 2025