Cement company wins export orders to Philippines

ISLAMABAD: Advisor for Commerce and Investment Abdul Razak Dawood has congratulated DG Khan Cement for making a breakthrough in winning orders for exporting cement to the Philippines.

In a statement on Twitter, the adviser said, “This follows on their success in China. Exporters should follow this example of extending their market reach across the globe.”

He further said that market share will increase once the market reach extends. “Increasing geographical diversification is an important part of our strategic trade policy,” he added.

Congratulations to DG Khan Cement for making a breakthrough in winning orders for export of cement to Philippines. This follows on their success in China.
Exporters should follow this example of extending their market reach across the globe. @ImranKhanPTI @appcsocialmedia 1/2

— Abdul Razak Dawood (@razak_dawood) July 8, 2020

The cement sector has made a recovery after three months as sales posted an increase in the month of June. Cement sales increased by 29.94 percent in June 2020 to 4.623 million tons from 3.557 million tons in June 2019 ending the fiscal year 2020 on a positive note

According to the data released by All Pakistan Cement Manufacturers Association (APCMA), domestic cement uptake increased by a massive 19.63 percent to 3.835 million tons in June 2020 from 3.206 million tons in June 2019. Moreover, exports also increased by 123.89 percent to 0.787 million tons in June 2020 from 0.351 million tons in June 2019.

Domestic cement consumption in the north was 3.384 million tons in June 2020 against 2.750 million tons in June 2019. However, exports from the north declined to 46,025 tons this June compared with 0.145 million tons last June.

READ MORE: Domestic cement consumption decline first time in six years

In the southern region, the situation was the opposite with domestic consumption declining to 0.451 million tons from 0.455 million tons in June 2019. However, exports increased to 0.742 million tons in June 2020 from 0.206 million tons in June 2019.

The overall cement consumption during July-June 2019-2020 inched up 1.98 percent to 47.81 million tonnes due to higher export growth of 19.8 percent that crossed 7 million tonnes mark after a long time.

Domestic consumption contracted by almost one percent, the first such decline in the last six years. “The higher uptake in June has provided a hope that the new fiscal year would be better as a result of the incentives provided to the construction sector,” said a spokesman of APCMA.

He appreciated the reduction in excise duty on cement but asked for complete withdrawal on the commodity. He reminded was the backbone of the construction industry that this government wanted to promote.