Pakistan: The All Pakistan Cement Manufacturers Association (APCMA) has revealed that the Pakistan cement sector remained under financial pressure during the fiscal year 2011-2012, which ended on 30 June 2012. This was attributed to increases in input costs in electricity, diesel, paper sack and gypsum and a devaluation of the Pakistani Rupee. However, for the same period the industry's local cement despatches met the highest levels ever recorded in the country.

Revealing the performance of the cement sector in the fiscal year 2011-2012, a spokesman for APCMA said that local cement despatches were 23.9Mt, an increase of 8.84% year-on-year. However exports remained under pressure throughout the year and declined by 9.12% to 8.57Mt. 2011-2012 was the third consecutive fiscal year when exports declined.

In 2011-2012 the cement sector increased its capacity by 3Mt. Total production capacity increased by 7.23% to 44.2Mt from 42.2Mt in 2010-2011. Capacity utilisation remained under pressure due to sluggish export demand, a sluggish construction sector, lack of investment in the housing sector and the government's 'inability' to initiate mega-projects.

Exports to India were only 0.61Mt in 2011-2012, a figure well below the expectations of the cement sector. However, exports to Afghanistan remained stable at 4.72Mt in 2011-2012. Exports to other destinations by sea declined to 3.25Mt, a drop of 17%.