Displaying items by tag: Pakistan

Pakistan: Maple Leaf Cement has reported a consolidated profit after tax of US$5.6m for the quarter ending June 2024, with sales revenue increasing by 5% to US$56.4m from US$53.8m year-on-year. The cost of sales dropped by 10%, boosting the gross profit by 44% year-on-year to US$21.7m.

Pakistan: Recent tax increases on cement have been blamed for a significant decline in demand, with cement despatches falling by 25% in August 2024 compared to August 2023. According to the All Pakistan Cement Manufacturers Association (APCMA), total cement dispatches during August 2024 were 3.37Mt, down by 34% year-on-year from 4.53Mt.

For the first two months of the 2024 financial year, total cement despatches were 6.38Mt, a decline of 18% year-on-year from 7.76Mt in 2023. In August 2024, domestic dispatches decreased by 21% year-on-year to 5.21Mt, and exports dropped slightly by 2% to 1.16Mt.

A spokesperson for the APCMA said "In the current budget, excise duty on cement doubled, alongside significant increases in federal and provincial taxes," adding that no other industry has been taxed as heavily. "The government must reassess its taxation policies to support the struggling construction sector, which is critical for employment and economic stability."

Pakistan: Fauji Cement recorded sales of US$287m in the 2024 financial year, which ended on 30 June 2024. This corresponds to year-on-year growth of 18% from US$244m in the previous financial year. The company’s operating costs rose by 14% to US$195m. Nonetheless, it succeeded in growing its net profit by 10%, to US$29.5m.

Pakistan: Bestway Cement has appointed Muhammad Danish Khan as its Chief Financial Officer. Khan has worked for Bestway Cement since 2019 first as Head of Budgeting, Treasury and Reporting and then Acting Chief Financial Officer. Before this he worked for Three, the AA, Deloitte and Ernst & Young in the UK. He is a graduate of the Government College University in Lahore and is a chartered accountant.

Pakistan: The cement industry reported a decline in overall despatches from 3.23Mt in July 2023 to 3.01Mt in July 2024, marking a 7% year-on-year fall. Domestic despatches decreased by 11%, while exports rose by 22%, according to The News International.  

A spokesperson for the All Pakistan Cement Manufacturers Association said "Higher taxes and increased input costs are affecting the country's cement sector. This is the 11th straight month during which domestic despatches are showing a declining trend due to sluggish economic activity in the country. The cement industry urges the government to review its taxation policies to reduce the burden of heavy taxes on this important sector of the economy."

Pakistan: The All-Pakistan Cement Distributors Association (APCDA) has asked the government to take heed of their strike call issued on 13 July 2024. The association is threatening action in response to new taxes and ordinances. These include a new sales tax, an increase in the 236-H income tax from 1% to 2.5% and the introduction of point-of-sale systems. APCDA said that the measures together made it ‘extremely difficult’ for cement dealers to operate. It called for exemptions or inclusion in a different presumptive tax regime in order to prevent industry collapse.

The News International newspaper has reported that association chair Chaudhry Sajid said that the new taxes will have to be passed on as additional costs for customers. He criticised the classification of cement as a fast-moving consumer good, as not all dealers are sufficiently ‘tech-savvy’ to adopt the requisite digital systems.

Pakistan: According to brokerage firm AKD Securities, Pakistan's cement industry recorded a 2% year-on-year growth in dispatches, reaching 45.3Mt in the financial year 2024, largely due to increased exports. Domestic sales, however, fell to a seven-year low of 33.2Mt, a 5% decline from 2023. This drop is attributed to a slowdown in construction activities, influenced by high construction costs, rising inflation, and peak interest rates.

Exports grew significantly by 56% year-on-year, amounting to 7.11Mt. This was mainly due to the decreased international coal prices, which improves the viability of exports. Despite the overall increase, June 2024 saw a decline in both local sales and exports. Local sales fell by 12% due to fewer working days during the Eid holidays, and exports declined by 18%, mainly due to reduced clinker sales from the south regions.

Pakistan: Cement producers across Pakistan have initiated an indefinite nationwide strike in response to increased withholding and turnover taxes introduced in the federal budget for 2024-25. The mandatory implementation of Point of Sale systems has also been criticised, due to a lack of resources and training. The All Pakistan Cement Manufacturers Association is urging the government to adopt a presumptive tax regime to mitigate these challenges. Meanwhile, despite domestic challenges, Pakistan's cement exports rose by 40.5% in the first 11 months of the 2023-2024 financial year (FY23-24), which ended on 30 June 2024. reaching almost US$237m from US$168m in the corresponding period in FY22-23.

Pakistan: Domestic cement sales declined by 4.6% to 38.2Mt in FY2024 from 40Mt in FY2023, reflecting a slowdown in construction activities. Despite this, exports were up by 56% to 7.1Mt, contributing to a slight overall rise in cement dispatches of 1.6% to 45.3Mt in 2024, according to Dawn newspaper.

A spokesperson from The All Pakistan Cement Manufacturers Association said “Cement is not a luxury item but a basic necessity. The government must take measures to reduce construction costs to make it affordable for the masses.”

Pakistan: Cement dispatches in May 2024 reached a nine-month high at 4.3Mt, marking an 8% rise year-on-year and a 45% month-on-month increase from April 2024, driven largely by a surge in exports. Over the first 11 months of the 2024 financial year, total dispatches amounted to 41.7Mt, up 3% from 2023 with exports growing by 66%, according to Pakistan Press International. However, domestic dispatches fell by 4%.