Growth in cement demand leads to production increase in Pakistan
Pakistan Times Business & Commerce Desk

KARACHI: Rapid growth in cement demand in Afghanistan, Bangladesh, Dubai, Sri Lanka, Indonesia, Malaysia and Thailand has ignited a new zeal and spirit in Pakistan’s cement sector which is currently busy in expansion of production capacity from existing 18 million tons to 28 million tons per annum.

Informed sources say, so far the major portion of the cake, 98 per cent of the exports, is enjoyed by the cement units located in Northern Zone of the country due to its close vicinity to Afghanistan.

The cement units located in Southern Zone, i.e. Sindh and Balochistan contribute only two per cent of the total exports earnings of the last year. The total exports were estimated over one million tons last year.

The new happenings in the region and growing economic activity, are going to activate the Southern Zone as well in view of the expanding market for Pakistani cement has rapidly gone up due to demand for cement in Sri Lanka, Thai Land, Indonesia and Bangladesh besides Afghanistan.

According to sources in capital market, DG Khan cement which is the largest exporter is expanding its production capacity at a cost of $73 million which would be adding 7000 tons of cement per day to transform into 4.2 million tons per annum.

Another unit is Lucky Cement which is increasing its existing capacity of 4800 tons per day to 21000 tons per day. This unit has already acquired land for setting up a plant near Karachi on main Super Highway.●