Construction activity increases in Karachi as a result of soaring cement sales

According to September 5 news reports, the All Pakistan Cement Manufacturers Association (APCMA) has released a report indicating a substantial revival in construction activities and a 37% increase in domestic cement sales in Karachi.

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The report from the APCMA indicates a promising start to fiscal year 2023-24 (FY-24). During the first two months of this year, domestic cement sales reached 6,573 million tons, compared to 4,8 million tons during the same period in the previous year.

Furthermore, export despatches experienced an extraordinary upswing of 117.13% during the same period, rising to 1.175 million tons from 540,957 tons year-on-year. Consequently, aggregate cement shipments, including both domestic and international sales, reached 7.747 million tons, an extraordinary 45 percent increase compared to the same period in FY-23.

In August, total cement shipments for both domestic and international markets increased by 37% to 4.518 million tons, up from 3.297 million tons in August 2022.

In August alone, local cement shipments reached 3.79 million tons, representing a significant 30 percent increase compared to August 2022. Simultaneously, cement exports increased by 87%, from 387,440 tons in August 2022 to 727,777 tons in August 2023.

A spokesperson for the APCMA emphasized that the country is presently dealing with a rapid depreciation of its currency against the dollar, historically high petroleum prices, and rising electricity rates. These economic difficulties are causing an increase in production and transportation costs, which is anticipated to have an effect on final consumer prices. The spokesperson emphasised the importance of the government addressing these issues expeditiously in order to mitigate the impact on the industry.