Cement profits decline, consumption stagnant
ISLAMABAD: The cement industry's profitability has declined considerably due to increase in input cost while the construction sector is not posting the anticipated demand. Profit after taxation of cement manufacturers has declined up to 42 percent in first quarter of this fiscal as compared to same period last year, disclose the spokesman of All Pakistan Cement Manufacturers Association, here.
Exports became competitive only because of a steep decline in the rupee value, as dollar increased from around 124 rupees at the start of this fiscal to 133 on 1st November, an increase of 7.26 percent in just four months. This decline in Pak currency however increased the input cost of most of the fuels (imported coal) and spare parts consumed by the industry.
Cement industry of Pakistan is heavily taxed. During the financial year 2018-19, federal