Pakistan to Become World's 6th Largest Cement Producer By 2030

[Riaz Haq]

Pakistan's rank as world's leading cement producer will rise from 16th in 2018 to 6th by 2030. It will replace Japan among the world's top 10 cement producing nations in 2030, according to World Cement Association forecast. Cement consumption is an important indicator of development activity and economic growth. Pakistan's domestic cement sales are continuing to grow, up 9.2% in October, 2019 from the same month last year. Total sales (local and export) in 4-month period between July and October 2019 stood at 16.117 million tons, 4.5 per cent higher than 15.419 million tons during the same period last year.

Source: World Cement Association

Last year, Pakistan produced 41.14 million tons of cement, according to International Cement Review. The country's cement industry has already built capacity to produce 59.5 million tons in anticipation of future demand for housing and infrastructure.  World Cement Association expects Pakistan to produce 85 million tons, 2% of the world's cement production in 2030.

Cement Sales in Pakistan. Source: Bloomberg

Currently, China produces more than half of all the cement used in the world. India produces 8% and  and European Union 3%. The three will continue to be at the top in 2030. However, China's share will drop to 35% while India's share will double to 16%.

Top Cement Producing Countries in 2019

Pakistan's domestic cement sales grew 9.2% in October, 2019 from the same month last year. Total sales (local and export) in 4 months period between July and October 2019 stood at 16.117 million tons, 4.5 per cent higher than 15.419 million tons during the same period last year.  Cement consumption is an important indicator of the state of economy. It is the most important construction material. It drives construction industry that is among the biggest employers in the world. Cement is used to build homes, factories, schools, hospitals, roads, bridges, ports and all kinds of other infrastructure.

Recent Spike in Public Sector Development Spending (PSDP)

Development of infrastructure under China Pakistan Economic Corridor projects is continuing to drive cement demand in the country. In addition, construction of major new housing communities is underway. One example of such a community is Karachi's Bahria Town. It is being built on the outskirts of Pakistan's financial capital is among the world's largest privately developed and managed cities.  It is spread over an area of a little over 70 square miles, larger than the 49 square miles area of San Francisco. When completed, Bahria Town will house over a million people, more than the entire population of San Francisco.

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[Riaz Haq]

Pakistan’s cement dispatches drop in 2022 financial year

https://www.globalvillagespace.com/pakistans-cement-exports-fall-by...

According to the dispatch split, northern-based mills shipped 39.44Mt of cement domestically during the FY21–22, which is 2.8% less than the 40.58Mt shipped during the FY20–21. From FY21–22 to FY21–22, the north’s exports decreased by 64.5% to 910,685t, compared to 2.56Mt exported in the prior fiscal year.

Domestic shipments by southern-based mills in FY21–22 totaled 8.19 Mt, up 8.7% from 7.53 Mt of cement in the prior fiscal year. However, exports from the southern zone had a significant reduction of about 35.6%, falling from 6.74Mt in the fiscal year to 4.34Mt in FY21-22.