Cement Industry

In: Business and Management

Submitted By Azmat82
Words 7268
Pages 30
Investments in the cement industry of Pakistan
The construction and material sector of Pakistan is supporting like the right hand in the economy of Pakistan. Though the cement industry in Pakistan has witnessed its lows and highs in recent past, it has recovered during the last couple of years and is buoyant once again. Pakistan cement factories continue to make significant progress in cement exports. The industry is contributing around Rs. 30 billion per annum to the national exchange in the shape of excise duty and other taxes and is also adding around Rs. 100 billion to the GDP of the country each year. The industry has been offering direct and indirect employment opportunities to more than one lakh people. Total investment in the cement industry currently exceeds Rs. 160 billion and is likely to go further up to Rs. 200 billion by 2011. Despite unprecedented growth in demand of cement, the industry is currently not able to generate adequate margins due to low level of prices of cement. (A. Cement, 2009)
Cement industry overview
Pakistan is ranked 5th in the world’s cement exports after a huge increase of 47 percent in exports during last fiscal year.
According to the (Global cement report, 2009) China maintained first position with 26 million tonnes in exports, while Japan got second position by exporting 12.6 million tonnes of cement. Third largest cement exporter in world is Thailand with around 12 million tonnes, followed by Turkey which exported 11.6 million tonnes of cement. Pakistan now at 5th position has left Germany behind by exporting 11 million tonnes of cement during last fiscal year. Germany now stands at 6th position with 9 million tonnes exports.
Cement market experts told that Pakistan secured 5th position because of high demand of cement in nearby countries and by capturing new markets such as African countries, Qatar & Iraq. Pakistan…...

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