Tag: Cement

  • Pakistan’s key industries report 3.63% output increase

    Pakistan’s key industries report 3.63% output increase

    In November 2023, Pakistan’s Large Scale Manufacturing Industries (LSMI) experienced a notable monthly growth of 3.63 per cent, reaching a production index of 114.85, as reported by the Pakistan Bureau of Statistics (PBS).  

    This marks an increase from the October 2023 figure of 110.83. 

    On an annual basis, LSMI output demonstrated a year-on-year rise of 1.59 per cent, contrasting with the November 2022 recorded index of 113.05. 

    However, when considering the cumulative data for the first five months of Fiscal Year 2024 (5MFY24), LSMI exhibited a marginal decline of 0.8 per cent when compared to the corresponding period in the previous year. 

    Various sectors played a significant role in contributing to this overall decline of -0.80 per cent. Notable contributors to the growth include food (0.53), garments (3.18), petroleum products (0.43), chemicals (0.32), pharmaceuticals (1.56), and cement (0.17).  

    Conversely, sectors such as tobacco (-0.80), textiles (-2.48), paper and board (-0.11), iron and steel products (-0.09), electrical equipment (-0.45), automobiles (-1.70), and furniture (-1.65) experienced contractions. 

    The provisional quantum indices of LSMI for November 2023, based on the 2015-16 reference year, have been formulated using the latest data provided by the relevant source agencies. 

  • Saying ‘qabool hai’ just got more expensive: Mini-budget proposes increased tax rates on weddings, related events

    Saying ‘qabool hai’ just got more expensive: Mini-budget proposes increased tax rates on weddings, related events

    The Finance (Supplementary) Bill, 2023 proposes to reintroduce advance tax on functions and gatherings, requiring a tax withholding of 10 per cent for filers and 20 per cent for non-filers.

    The tax rate will be applied to the total amount of the bill from the individual or entity hosting the function, whether it is in a marriage hall, marquee, hotel, restaurant, commercial lawn, club, community place, or any other location used for such purposes.

    If the food, service, or any other facility is provided by another person, the host must also collect advance tax on the payment for such items at a rate of 10 per cent for filers and 20 per cent for non-filers. This tax will be adjustable against income subject to the normal tax regime and refundable if it cannot be adjusted.

    The proposed supplementary finance bill has introduced advanced tax on air tickets, marriage halls, hotels, commercial lawns, marquees, and clubs. Additionally, a 10 per cent advance tax will be levied on wedding ceremonies. Duty on business and first-class air travel has also been increased.

    The bill also suggests a 10 per cent hike in the tax on the retail price of beverages. Furthermore, the FED on cement will increase from Rs1.5 to Rs2 per kg after a proposed rise of 50 paisas per kg.

    The supplementary finance bill has also proposed an increase in the FED on cigarettes.

    • The proposed supplementary finance bill suggests a tax of Rs16,500 per 1,000 cigarettes for the tier 1 category, and Rs5,050 per 1,000 cigarettes for the tier 2 category.
    • The bill proposes a 10 per cent tax on sugary juices, syrups, squashes, and artificial sweeteners, and an 18 per cent GST on the retail prices of all items.
    • Imported mobile phones worth more than $500 will see an increase in GST from 17 per cent to 25 per cent.
    • The same 25 per cent rate will be applicable to all luxury goods.
    • The bill proposes a levy of 20 per cent or Rs50,000 FED for air tickets.
    • No additional tax will be applied to wheat, rice, milk, pulses, vegetables, fruits, fish, eggs, meat, or poultry.
    • Real estate or property will not be subject to any tax in the mini budget.
    • The document proposes an increase in the monthly stipend for beneficiaries of the Benazir Income Support Program, with the program’s budget increased by 40 per cent.
  • DG Khan Cement to export 50,000 tonnes of cement to the United States

    DG Khan Cement to export 50,000 tonnes of cement to the United States

    Following long and complex certification processes, D.G. Khan Cement Company Limited (DGKCL), one of Pakistan’s largest cement producers, is set to export 50,000 tonnes of the building material to the sophisticated US market.

    This is a positive development for Pakistan, which is struggling to boost exports in the face of a burgeoning trade deficit that has steered the rupee to historic depths. The process took almost ten months for the renowned industrial group to complete the necessary certifications for delivering cement to US markets after winning the contract. TXDOT, LDOT, NCDOT, and SCDOT are among the certifications available.

    According to Brecorder, the company’s CFO, Inayat Ullah Niazi, stated that a ship was currently loading cement at a port in Karachi for delivery to Houston.

    It was not easy for the company to meet the contract for a monthly supply of 100,000 tonnes of cement to Texas. In August of last year, DG Khan Cement signed a contract with a US company for the year 2021.

    Since the United States lacks cement production, it imports it from Mexico, Canada, and Turkey.

    Finally. a Pakistani cement supplier has entered the US market for the first time, as demand for the construction material has risen dramatically, with buyers looking for other options in the wake of President Joe Biden’s $6 trillion infrastructure package.

    All of the mega infrastructure in the United States, including roads, bridges, and other structures, would be rebuilt as they were nearly a century ago under the announced package.

    Pakistan exported 4.971 million tonnes cement in the first 11 months of the current fiscal year (July-May), a negative growth of 43.32 per cent, according to export data. Cement exports to Afghanistan were only 813,493 tonnes during this time, a negative 65.04 per cent increase.

    With only 1.478 million tonnes exported, exports to other countries experienced negative growth of 27.2 per cent.

    As per industry insiders, after DG Khan Cement began discovering the US market for cement exports, other larger players began the certification process for their goods.

    According to the latest figures released by the Pakistan Bureau of Statistics (PBS), the country’s exports declined by 10.22 per cent on a monthly basis in May 2022, falling to $2.6 billion from $2.897 billion in April 2022.

    D.G. Khan Cement, one of Pakistan’s largest cement producers, earned Rs4.1 billion in the nine-month period ending March 31, 2022, a 26 per cent increase in profit. In the same period of 2020-21, the company made Rs3.25 billion in profits.

    It is worth noting that the business also received orders for cement export to the Philippines back in 2020.

    With a nearly 50 per cent (Rs300 per bag) increase in the last 12 months, more price increases would be required to offset the coal cost impact.

  • Pakistan’s cement exports fell by 82.15 per cent in April 2022

    Pakistan’s cement exports fell by 82.15 per cent in April 2022

    Owing to unpredictable economic and political conditions, cement sales remained weak last month and between July and April 2021-22 (10MFY22), according to All Pakistan Cement Manufacturers Association (APCMA).

    The sector shipped 3.37 million tonnes of local cement in April 2022, down 17 per cent from 4.06 million tonnes in April 2021, while exports dropped 82.15 per cent from 877,163 tonnes in April 2021 to 156,613 tonnes in April 2022.

    As a result, overall cement sales including local and exports plummeted by 28.6 per cent in April 2022 to 3.52 million tonnes, down from 4.94 million tonnes in April 2021, as per APCMA data.

    North-based cement mills sold 2.8 million tonnes in domestic markets in April 2022, down 17 per cent from 3.3 million tonnes in April 2021. Exports from northern mills declined 75.22 per cent in April 2021, from 250,072 tonnes to 61,971 tonnes.

    According to data from the State Bank of Pakistan (SBP), banks granted Rs180 billion in housing loans in 10MFY22, with Rs57 billion disbursed over the same time. Housing loan applications of Rs409 billion had been received by banks.

    The political and economic instability of March had begun to deter investors in the construction industry, as seen by the APCMA’s domestic April sales figures.

    Read more: CNG prices pushed to Rs140 per kg for sales tax collection

    Moreover, high lending rates of 12.25 per cent effective April 7 and the risk of further rate hikes will impact construction activity, while consumers are already under pressure due to increased living costs, with the CPI for April at 13.37 per cent.

    Owing to record high prices for steel bars, cement, and other construction supplies, people are also cautious to make new investments in building new homes.