Cement industry association proposes reduction in tariffs and taxes, citing decrease in domestic sales during the fiscal years 2024-25.
In the recently concluded fiscal year ending 30th June, 2025, the cement industry in Pakistan experienced mixed fortunes. While domestic sales saw a decline, the sector managed to achieve a significant growth in exports.
According to the All Pakistan Cement Manufacturers Association (APCMA), the cement sector's domestic sales decreased by 3.05% in the financial year 2024-2025, falling from 38.181 million tons in FY2023-24 to 37.017 million tons in FY2024-25. This decline, as per the APCMA, is primarily attributed to the impact of high duties and taxes imposed on cement, which discourages domestic consumption.
Cement, being a basic necessity, not a luxury item, as stated by the APCMA, is essential for various construction activities. The association emphasized that these fiscal burdens hinder the growth of the cement industry by suppressing consumer demand. They urged the government to reduce these taxes and duties to boost domestic demand, allow better utilization of idle production capacity, and stimulate economic growth.
Despite the domestic sales slump, the cement industry achieved a robust export growth of 29.46%. Exports rose to 9.204 million tons compared to 7.110 million tons the previous year, contributing to an overall industry growth of 2.05% in total volumes.
North-based cement mills saw a decrease in domestic despatches by 2.60%, with volumes amounting to 32.410 million tons. However, they managed to increase their exports significantly, with a 30.726% increase in June 2025 compared to the same month in 2024. South-based cement mills, on the other hand, showed a decrease of 5.21% in domestic despatches, amounting to 6.291 million tons. Yet, they saw a substantial increase in exports, with a 33.04% increase in June 2025 compared to the same month in 2024.
In June 2025, South-based cement mills despatched 78.91% more cement in exports and 21.99% more cement in local markets compared to June 2024. North-based mills, meanwhile, despatched 10.21% less cement in June 2025 compared to June 2024 in local markets but 91.05% more cement in exports during the same period.
The APCMA has requested the government to reduce duties and taxes on cement to address the issue of decreasing domestic demand and to enhance the sector's contribution to the economy. By reducing these fiscal burdens, the association believes it could stimulate economic growth, create employment, and increase allied industrial revenues.
[1] Source: All Pakistan Cement Manufacturers Association (APCMA) reports [4] Source: Pakistani Economic Survey 2024-2025
- The cement industry's growth in exports, which saw a significant increase by 29.46% in the financial year 2024-2025, might have been influenced by lower taxes and duties placed on cement in foreign markets, as opposed to the high domestic duties and taxes that discourage consumption and negatively affect business growth within Pakistan.
- To stimulate economic growth, create employment, and increase allied industrial revenues, the All Pakistan Cement Manufacturers Association (APCMA) proposed a reduction in duties and taxes on cement, as they believe this could address the issue of decreasing domestic demand and boost the sector's overall contribution to the nation's financial growth.
