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Pakistan sees 22.79% increase in exports

World Cement,

The value of Pakistan’s cement exports has certainly picked up thus far this fiscal, with the latest figures showing a 22.79% increase in the first three quarters of the current financial year. In the period July 2012 – March 2013, exports reached US$421.121 million, up from US$342.959 million for the same period in the previous financial year. This amounts to 6 220 995 t of cement, slightly down from the comparable period in 2011/12 which saw exports of 6 245 332 t.

In March, volumes were significantly down, at 544 250 t against 655 960 t in March 2012. However, the value of exports increased 13.3% to US$44.40 million. According to analysts, cost control measures have improved margins, driving the increased profitability of the industry. The depreciation of the Rupee has also been a driver for growth.

Meanwhile, increased freight costs are reportedly threatening the success of Pakistan’s cement industry, as higher costs could push prices up by Rs.50/ 50 kg bag, hurting the country’s competitiveness compared with other exporting nations. Iran has won ground in Afghanistan, a long-standing market for Pakistan, and Vietnam’s significant surplus capacity makes it another challenger in the region.

Written by Katherine Guenioui.

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