LAHORE: The first month of the financial year 2023-24 has shown positive trading in the cement sector, where despatches registered an increase of 57.44% in July 2023. Total cement despatches during July 2023 were 3.212 million tons, compared to 2.040 million tons despatched during the same month of the last fiscal year.

Data released by the All Pakistan Cement Manufacturers Association (APCMA) on Thursday reflects that local cement despatches by the industry during the month of July 2023 were 2.776 million tons compared to 1.887 million tons in July 2022, showing an increase of 47.15%. Export despatches also increased by a massive 183.91% as the volumes increased from 153,517 tons in July 2022 to 435,854 tons in July 2023.

In July 2023, North-based cement mills despatched 2.473 million tons of cement, showing an increase of 46.54% compared to 1.688 million tons of despatches in July 2022. South-based mills despatched 739,376 tons of cement during July 2023, which was 109.61% more compared to the despatches of 352,747 tons during July 2022.

North-based cement mills despatched 2.351 million tons of cement in domestic markets in July 2023, showing an increase of 45.37% compared to 1.617 million tons despatched in July 2022. South-based mills despatched 425,336 tons of cement to local markets during July 2023, which was 57.84% more than the despatches of 269,477 during July 2022.

Exports from North-based mills increased by 73.41% as the quantities increased from 70,247 tons in July 2022 to 121,814 tons in July 2023. While exports from the South also increased by 277.13% to 314,040 tons in July 2023 from 83,270 tons during the same month of the last year.

The APCMA spokesman emphasized that the economic stability of the country is very much dependent on a stable government. He mentioned that although, compared to last year, the start of the current fiscal year looks good, in fact, the domestic despatches in July 2023 were almost 20 per cent less than in June 2023, so compared to last month, there was a decline.

He also expressed concerns over the rising cost of production. The provincial government has increased the rate of royalty from Rs 115 per ton to Rs 250 per ton.

The rate of electricity has also been increased by almost Rs 7.5 per unit, and the recent increase in fuel cost by around Rs 20 per liter has impacted the freight cost, he added. He was positive that this fiscal year would be a better year for the sector due to expected investments in large-scale projects.

Copyright Business Recorder, 2023