Members of the All Pakistan Cement Manufacturers Association (APCMA) recorded cement sales during march 2021 were 5.773 million tons against 3.722 million tons dispatched in the corresponding period last year. According to APCMA, cement exports also contributed to this growth. The Dawn newspaper has reported that exports rose by 7% to 6.33Mt from 5.94Mt while local dispatches rose by 16% to 31.6Mt from 27.4Mt.
The association said that producers face problematically due to coal and energy prices are increasing consistently. Due to the continuous rise in major input cost elements, the industry is finding it hard to operate and is the major challenge for the industry. The spokesperson said the rising cost of electricity and coal led to an increased cost of cement production, which is creating difficulties for the industry. “The industry is not demanding any special favors but wants to be treated at par with five exporting sectors and import levies on coal have to be rationalized as it is the main input of the cement sector” he added.
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Contribution Of Cement Industry In Pakistan Economy
The contribution to Pakistan’s economy is remarkable. The total people employed in the cement industry are more than 3% percent of the total employed people of Pakistan. The management or other officials, technicians, engineers, skilled or unskilled laborers are performing their duties in the industry. The cement industry not only provides employment directly but also provides indirect employment opportunities to many people. The connected industries of cement industry like transportation are benefitted and a lot of people get employment. Many retailers are also employed due to the cement industry of Pakistan.
The cement industry also contributes to GDP, Foreign earnings, improving the infrastructure of the country. A considerable amount of revenue is generated by the cement industry of Pakistan. More than 30 billion PKR has been paid as a tax to the country by the cement industry of Pakistan. Due to the expansion of the cement industry, its tax revenue will be surely increased in the coming years. Another positive aspect of the cement industry is that there are investment opportunities due to the expansion of the industry.
Conclusion
Although the Pakistan cement industry has grown its sales, there is a need to resolve issues regarding high input costs. Government should make serious efforts to minimize the cost of energy and coal for the cement industry. The government should introduce friendly policies to promote and encourage the cement industry of Pakistan.
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