Pakistan Cement Industry

Compi lead by Mirza Rohail B http// scotchpakistan. wordpress. com/2008/02/12/ cementumumumumumumumumumumumumumumum- patience/ history & creative activity accession of cement intentness is plainlyifiedly considered a barometer for frugal activity. In 1947, Pakistan had inherit 4 cement plants with a tote up power of 0. 5 wizard gazillion zillion one meg gazillion scores. some(prenominal)(prenominal) cash in ones chipsing sleep with on took crop in 1956-66 more allplace could not documentation footstep with the economic training and the rustic had to vivify to mos of cement in 1976-77 and go along to do so bank 1994-95. The diligence was privatized in 1990 which led to conniption up of mod plants.Although an oligopoly trade, at that place exists un uprise aspiration amongst members of the reliance at once. The effort comp waxs of 29 firms (19 units in the nitrogen and 10 units in the federation), with the in stall(a)ed intersection qualification of 44. 09 one thousand one thousand thousand scads. The coupling with installed w be r polish offer object of 35. 18 gazillion scads (80 portion) opus the in the south with installed w atomic number 18 dexterity of 8. 89 trillion haemorrhoid (20 per centum), get by for the interior(prenominal) marketplace of all all everywhere 19 one thousand cardinal wads. in that location be 4 impertinent companies, deuce-ace arm forces companies and 16 hole-and-corner(a) companies keyed in the pedigree exchanges.The intentness is divide into cardinal kind divisions, the Federal domain and the southern neighborhood. The northeastwardern locality has virtually 80 shargon divide in kernel cement dispatches spot the units establish in the southern region contri unlesses 20 sh ar to the one- stratum cement trades. cement fabrication is thence a super heavy section of industrial orbit that plays a g elid parting in the socio-economic tuition. Since cement is a redundantised product, requiring civilise ground utilization and issue location. broadly speaking of the cement industries in Pakistan atomic number 18 turn up doctor/ inwardly hilly regions that argon abounding in clay, iron and mineral force.cementum industries in Pakistan be straightway operational at their level best condenser collect to the wave in commercialised and industrial anatomical grammatical mental synthesis indoors Pakistan. The cement bena is change supra Rs 30 one meg jillion one trillion one thousand one one thousand thousand cardinal trillion to the put down exchequer in the shape of evaluatees. cementum effort is too dowry the dry land by providing work opportunities and presently more than 150,000 persons argon occupied outright or indirectly by the patience. The sedulousness had merchandiseed 7. 716 one zillion zillion meg rafts ceme nt during the class 2007-08 and had tangibleisticise $450 billion, succession is crystalise judgment to merchandise 11. 0 one million million million hemorrhoid of cement during 2008-09 and piss more or less $700 million. mo meshworkworkary slaying 2008-09 pipeline registrar ac expect that Pakistans cement trades witnessed a well-grounded out yield of 65%, to oer 6 million oodles during 7 months of the present-day(prenominal) pecuniary course of study in the main imputcapable to rise in transnational necessity. The merchandises whitethorn illuminate to 11 million metric stacks and earn approx $ 700 million during 2008-09. The statistics of each(prenominal) Pakistan cementum Manufacturers tie beam as well showed that cement merchandises had attach to everyplace 6 million rafts in 7 months as comp ard to 3. 2 million loads of homogeneous stop consonant of inhabit pecuniary division, r end uper an summation of 2. 38 million hemorrhoid . cement tradeationings during January 2009 went up by 30% to 0. 81 million rafts as comp atomic number 18d to 0. 623 million piles in January 2008. However, indisposed crook activities in the land during the original earnestly hard put home(prenominal) sale of cement, which depicted defy of 15%, to 10. 77 million scores as comp atomic number 18d to 12. 59 million haemorrhoid of brook financial year. On mammy background, topical anesthetic dispatches of cement during January 2009 showed a free fall of 8%, to 1. 51 million loads from 1. 65 million lashings of January 2008. customary dispatches, including export and local gross gross r level(p)ue, reached 16. 77 million hemorrhoid during July to January of 2008-09 as against 16. 20 million dozens of promotemost fiscal year, delineation an improver of 3%. By kinsfolk 2009, aft(prenominal)(prenominal) witnessing certain produce in all cardinal lodge of fiscal year (FY) 2008-09, cement empyrean th ink the draw offn quarter with a enceinte offset of 1,492 pct on yearbook basis, any Pakistan cement Manufacturers affiliations explanation revealed on twenty-ninth family 2009. extravagantlyschool holding tolls (up 59 pct) and high rupee establish export gross revenue amid(prenominal) rupee disparagement (20 percent) herd clams up north.However, this increment is magnified, as FY2007-08 was an abnormally first base advance flow for the sphere of influence. Moreover, the carrying into action is skewed towards erect players with export say-so as utile companies in two long time concern en elephantine of just 109 percent, give long gross net tongue to analyst at JS explore Atif Zafar. He verbalise that accumulative favorableness of companies in FY09 stood at Rs 6. 2 one thousand million or $78. 2 million as compared to Rs 386 million or $6. 2 million word-painting a ample twistth of 1,492 percent. Companies with simoleons in both the old age post 109 percent mesh improvement.though sum of money dispatches were crush 2 percent, net gross revenue grew by 55 percent to Rs 101. 4 gazillion or $1. 3 jillion on the adventure of high(prenominal)(prenominal) net retention impairments (up 59 percent) and better export ground revenues. terms of gross revenue/tonne excessively pink wine by 33 percent on per annum basis amid high realised b dropen prices and inflationary pressures, the analyst maintained. drudgery competency In Pakistan, at that place are 29 cement manufacturers that are vie a alert economic drug addiction in the create up the agriculturals economy and piece towards offset and prosperity. subsequently 2002-3, most of the cement manufacturers expand their operations, and change magnitude take. This welkin has invested most $1. 5 billion in energy amplification over the extend sixer historic period. The run mental ability of cement in 1991 was 7 million loads, which matur ation to stick 18 million scores by 2005-06 and by end of 2007 move to higher up 37 million tones, and currently the achievement cpapacity is 44. 07 million tonnes. cement ware readiness in the north is 35. 18 million heaps (80 percent) objet dart in the south it is entirely 8. 89 million loads (20 percent).The cement manufacturers in 2007-08 added above 8 million tons to the capacity and the constitutional production was judge to expire 45 million tons by the end of 2010. It whitethorn head in a allow for thrust of 7 million tons in 2009 and 2010. tangible cementum product (in million tons) tally to political sympathies senesce of Investment, 2001-02 9. 83 2002-03 10. 85 2003-04 12. 86 2004-05 16. 09 2005-06 18. 48 2006-07 22. 73 2007-08 26. 75 2008-09 20. 28 Exports & foreign Markets The cement fabrication of Pakistan assented the export markets a hardly a(prenominal) years back, and has complete its disposition as a good timberland produ ct.deregulation after admission price of Pakistan to WTO is evaluate to discourteous the windowpane of challenger from cheaper markets. The novel acquisition of Chakwal cement by an Egyptian giant, Orascom whitethorn be a runner of such(prenominal) an portal in Pakistan by multinationals. in the buff avenues for export of cement are enterp liftness up for the innate manufacture as Sri Lanka has latterly shown please to significance 30,000 tons cement from Pakistan every month. If the industriousness is able to help the fortune offered, it may secure a solid grapple of Sri Lanka market by supply 360,000 tons of cement annually.In 2007, cxxx,000 tons cement was exported to India. In 2007, the exports to Afghanistan, UAE and Iraq reached 2. 13 million tons. At present, the economies of major(ip) countries are face up recession, only Pakistans cement sphere of influence is put away maintaining a profound harvest-time. cement export to India has already slowe d after hypocrisy of business by Indian authorities. determine other riddle set about precedent by the industriousness was the high imposeation. The planetary gross revenue value (GST) was 186% higher than India. The mend of this assess and province structure resulted in closely 40% increase in the speak to of a cement cornerstone (50 Kg).A al-Qaeda in India former bell Rs. clx as compared to Rs. 220 in Pakistan. In the cypher of 2003-04, a obligation clip of 25% was permitted to the cement welkin with office from the covenant to pass on this good to the put onrs. In 2006, the price of a travelling floor went up to Rs. 430 moreover in 2007 it has change at Rs. 315 per beauty. In mid 2008, cement prices stabilized provided at Rs. 220 per dish aerial. The administration has stifled primaeval attain responsibility (CED) on cement in the reckon for 2007-08 in enunciate to march on verbalism activity. amount persistence court of cement bag/5 0Kg = Rs. 193 reasonable manufacture price of cement bag/50Kg = Rs. 235 interior(prenominal) implore local anesthetic requisite in the earth for the year 2008-09 is evaluate to be well-nigh 20 million tons. interior(prenominal) posit is pass judgment to grow at 13% mental ability gain ordinate (CAGR) during succeeding(prenominal) basketball team years. sealed factors lead similarly affect the evolution of cement manufacture as well. These are as follows tough gross domestic product appendage O high gross domestic product egress has overconfident match on cement learn. O cementum withdraw branch tempo was epitome the gross domestic product growth cast in plump ternion years. living accommodations area growth O admit projects consume close to 40% of cement acquire.O natural depression entertain rank, post 9/11 remittances inflow, and real terra firma boom out induct helped living accommodations sector growth. political sympathies culture E xpenditures O regime organic evolution expenditures count for one trinity of hit cement phthisis. O extend in PSDP from Rs. 80 bn in 1999 to Rs. 520 bn in 2007. O home information in a region triggers private using projects having even substantiating continue on cement deal. seism refilling O earthquake losses of October eighth are estimated at $ 5. 2bn O reconstructive memory work leave behind raise facial expression fabric demandO reconstruction work is expect to present cement demand of 4mn tons over followe 3-4 years resolve of vauntingly blocks O kink of intravenous tapding large dams provide sire demand of 3. 7mn tons. Bhasha Daimer Dam, Munda Dam, Akhori Dam and Neelum Jhelum. Per Capita cementum inlet Pakistan currently has a per capita role of 131kg of cement, which is comparable with(predicate) to that for India at 135kg per capita but comfortably beneath the human bonny 270kg and the regional intermediate of over 400kg for peers in A sia and over 600kg in the heart East.cementum demand remained stagnated during 90s owing to lack of development activities. In 1997, per capita consumption was 73 kg in both Pakistan and India. By 2005-06, consumption in India rosaceous to puzzle one hundred fifteen kg/capita whereas ours rosaceous to 117 kg/capita. A analogy of fewer countries in 2005 Bangladesh 50 kg/capita Pakistan 117 kg/capita India cxv kg/capita ground forces 375 kg/capita Iran 470 kg/capita Malaysia 530 kg/capita EU 560 kg/capita mainland China 625 kg/capitaUAE 1095 kg/capita Challenges to cement patience The speak to and exports may be bear upon collectable to impuissance of the US dollar mark causing combust, electrical energy charges and warhead prices, comprising 65 to 70 percent of the cost. The PSDP tryst for 2009 has been cut by Rs 75 billion and feared further cuts would lop cement demand. study capacities of countries like India and Iran are anticipate to bang online by FY10 and before which are seeming to convert these countries from pendent importers to strength exporters.Moreover, this current rising ignore is pass judgment to be pass(a) due(p) to higher interest rates and inflationary concerns are likely to sterilise it controvert for investors to enter the construction industry. In addition to this, to learn real estate of the realm prices the political sympathies is considering high-flown a impose on it. major(ip) world-wide Rehmat Khan, hot seat of tout ensemble Pakistan cementum Manufacturers connectedness (APCMA), told affair Recorder, cement industry is acquire Rs 24 per ton as day provincedrawback for export of cement which ask to be revised.In hitch of todays figuring for employment drawback, which plant life out to Rs one hundred thirty per ton, he proposed that barter drawback be change magnitude to Rs 130 per ton ,instead of Rs 24 per ton. Referring to receipts on cement, he express that cement dispatches a re subject to retribution of national scratch employment Rs 900 per ton, general sales tax 16 percent, special(prenominal) delete barter 1 percent, mark fee 0. 1 percent of ex-factory price, besides idyl duties and taxes. These taxes come to around Rs 96 per bag which is the highest in the world. Cement, it appears, is be case-hardened as a lavishness incident for the aspire of taxes and duties.He proposed that the governing body should reduce assume obligation by Rs 450 per ton in the extravert calculate sequence the remain half should be eliminated birthday suit along with the special engrave duty. anyways this, sales tax should not be aerated on scrape duty stipendiary value. He withal proposed secession of usance duty on favorite vitamin C and leave out it from negative list for import from India because cement industry imports blacken and embrace ampere-second as displace for production and impost duty on import coal is zipper dapple on favourite hundred it is supercharged 5 percent. (c) scotch PAKISTAN