Pakistan Cement Export Rise to $236 Million

Pakistan Cement Industry has gained high export revenues in the current year compared to the previous year. According to the Pakistan Bureau of Statistics, the cement exports during Fiscal Year 2022-2023 were $168.583 million, whereas from July to May 2023-2024, the exports reached $236.793 million. 

Pakistan Cement Export

What Are Pakistan Cement Export Destinations?

Pakistan’s major cement export destinations in 2022-2023 included the following;

  • Sri Lanka $104 million
  • Afghanistan $71 million
  • Bangladesh $56 million
  • Madagascar $36 million
  • Qatar, South Africa, Mozambique, Togo, and Cameron, Collectively $56 million

From $570mn in 2012 to $270mn in 2021 – Decline in Pakistan Cement Export 

Pakistan Cement Export

Although the Pakistan cement export revenue in the last 11 months was higher than the previous year, the industry has been lucky in the past to embrace even higher export rates. Reviewing the historical data unveils Pakistan Cement Exports;

  • $570mn in 2012
  • $530mn in 2013 
  • $517mn in 2014 
  • $345mn in 2015 
  • $165mn in 2021-22
  • $323mn in 2022-2023
  • $236mn in 2024

The decline in Pakistan Cement Exports was caused by the availability of cheaper sources of cement from China, India, Iran, and now Bangladesh. Although the cement export rate has increased, the local consumption of cement has decreased due to hampered economic activity and a decline in construction and development projects. 

New Taxes on the Pakistan Cement Industry

As we have observed in the latest FY 2024-2025 budget, FBR aims to generate a revenue of Rs. 13 Trillion through taxes. As we have observed taxes on all industries including textile, food, cigarette, real estate, and construction material, the government has also proposed a Federal Excise Duty of Rs. 3 per kilogram, on cement. Read more about the latest taxes in Budget Pakistan 2024. 

Who is the Biggest Exporter of Cement?

Although China is the world’s largest cement producer, it is also the largest consumer. However, talking about the five biggest cement exporters in 2022; include the following; 

  • Veitnam: $1.8 billion
  • Turkiye: $1.7 billion
  • Germany: $588.6 million
  • Egypt: $570.2 million
  • Canada: $512.9 million

Can Cement Be Replaced in the Future?

Pakistan Cement Export

The increasing environmental concerns have compelled the world to look for sustainable alternatives in every industry, including real estate construction and development. Cement also contributes to global warming by producing thousands of pounds of carbon dioxide during production. 

Pakistan lacks cement alternatives, yet the West has successfully found low-carbon cement substitutes. These include Fly Ash, Blast Furnace Slag, Micro Silica, geopolymers, and fibers.  

Microsoft and Google’s Pledge for Climate-Friendly Cement Purchase

Over the years, environmentalists and researchers have worked hard to raise awareness for low-carbon cement or its alternatives. Thanks to the World Economic Forum, the world has already observed the impact of sustainability movements as New York & California have passed laws to reduce greenhouse gas emissions from the cement industry. 

The awareness and demand for eco-friendly material also inspired 50 major corporations including tech giants Microsoft, Google, and Salesforce, who pledged to purchase low-carbon versions of cement, steel, aluminum, and other commodities. The movement continues unless carbon footprints are reduced. 

 

Future of the Pakistan Cement Industry

Pakistan faces a high demand for real estate developments, including homes and commercial properties. Therefore, the demand for cement is also high, even when there is no local alternative for cement. Currency there is 83 million tons per year cement capacity, and more cement plants are in line to increase export revenue.

Pakistan Cement Export

Although Pakistan has recently regained its export momentum by rolling into markets like the United Kingdom, France, Germany, and Mexico, we should be prepared to compete with our neighbors who produce cheaper cement. Also, to meet global sustainability goals, Pakistan’s cement industry must look for low-carbon cement alternatives. 

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