Ever since Prime Minister, Imran Khan took the oath, Pakistan is facing a decline in almost every sector. The economy is dwindling and the government of Pakistan is trying tooth and nail to ameliorate it. However, recently, the cement industry in Pakistan saw growth in cement export by 21 percent.
The cement industry in Pakistan marked an increase of 21.9percent in gathering of foreign exchange earnings, 40.4percent in relation to quantity. Moreover, in terms of Pakistani rupee, the earnings from Pakistan cement exports stood at 49.7percent in the fiscal year 2018-2019. Pakistan’s Bureau of Statistics (PBS).
According to the official data of the government of Pakistan, Pakistan exported 6.4Mt of cement for US$271.72m in the fiscal year 2018-2019. In contrast, in the last fiscal year, Pakistan earned US$222.84m for exporting 4.56Mt cement and clinker.
In relation to the export price in Pakistani rupee, exports raised over 50percent throughout the fiscal year 2018-2019 to PKR36.55bn. Nevertheless, the price in US dollars dropped 13.2percent from US$48.84/t to US$42.41/t.
Notwithstanding, in June 2019 Pakistan’s cement industry received foreign exchange earnings of US$11.55m by transporting 273,071t; contrasted to US$17.050m at 395,152t in the preceding months, and US$16.31m from 370,574t through June 2018. As per certain data, this displays a drop of 30.9percent and 32.2percent in relation to price and volume.
Besides, All Pakistan Cement Manufacturers Association (APCMA) did not release data on cement export as of now. However, as per a news channel, one of the spokesmen of the All Pakistan Cement Manufacturers Association (APCMA) said the data will be released shortly.
Pakistani cement distributors deciding a plan of action
Although Pakistani cement exports raised, the All Pakistan Cement Distributors Association (APCDA)devising a plan of action. Following the PTI government’s new tax policy, the cement distributors are protesting since July 1. People related to cement plants are yet suffering unrest in Pakistan.
Additionally, All Pakistan Cement Distributors Association (APCDA) has approved the action owing to the government’s initiation of new tax rules in the federal budget year 2019-2020. Furthermore, All Pakistan Cement Distributors Association (APCDA) has called the meeting of the association’s general body. The meeting is going to discuss every tax-related subjects from withholding tax to other taxes and taxes on the transportation of cement.
To summarise, It is a breakthrough in almost one year of Pakistan Tehreek-e-Insaf’s (PTI) government. Hopefully, the government would successfully negotiate with people linked to the cement industry and improve the grave scenario of protest. If, for instance, the government fails to negotiate with protestors, the enhanced growth of cement will shrink again, and this would be the last thing that PTI led government would want.
The IMF loan has wreaked havoc on the masses in Pakistan with the loans $6billions. The Pakistani government is forced to calculate taxes from the general public. In this grave scenario of inflation, heavy taxes, and IMF strict conditions, the improvement in cement export is indeed a very good omen for Pakistan.