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CPEC to lift cement demand to record levels

Source: The Nation

Date: 17th December 2018

Lahore – The China-Pakistan Economic Corridor (CPEC) is going to have huge impact on cement production level in the country, as the demand from the infrastructure and housing sector will surge to a record high with work on Gawadar Port, KKH Phase-II (Havelain-Thakot 120km) and the Karachi-Lahore Motorway (Sukkur-Multan 392km).

According to a report, the previous government in the country had also released Rs2.35 billion for the Housing and Works division.  The new government of PTI has assumed the power after general elections 2018 on the promise of constructing 50 lakh housing units, creating a huge demand of cement. The govt has now announced to construct 10,00,000 houses per year.

PM Imran Khan has repeatedly said they would bring economic revolution through housing. He said the private sector should come forward and work, and they would support them.

The increased production capacity along with high demand from housing infrastructure projects portrays a positive picture for the future of Pakistan’s cement sector. However, cement plants in Punjab are being brought under government regulation, with the Punjab Government halting the Plants on the pretext of environmental protection. The report also suggests that such policies if pursued can provide mixed outcomes for the cement sector in the future.

According to the report, another possible discouraging factor for the cement sector in Pakistan is the declining export figure that has dropped as compared to previous years.

According to the report, Pakistan’s cement industry is currently running at 95 percent capacity that has encouraged the domestic cement manufacturers to spend an estimated $2.25 billion on new production capacity.

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