Cement is one of the most important industries of Pakistan. Limestone and gypsum are the main raw materials for manufacturing of cement and they are present in abundance in Pakistan along with good supply of Natural gas.
This great potential makes the country capable of producing cement not only for local use but also for export as well. Pakistan cement industry has been exporting cement to the neighboring countries like U.A.E, Afghanistan, India, Iraq and Russia.
At present there are 24 cement plants are operating in Pakistan with the production of approximately 9.403 million tons. Out of these 24 cement plants, 17 are private and 7 are public.
11 new plants are also in planning stage and the capacity of these plants is estimated around 12.988 million tons. The industry has achieved a growth of 32% with the domestic demand increasing by around 24.95% and the exports by nearly 111.86%. Recently the country has been able to export to some of the African countries as well.
Cement industry is divided into two main regions; the northern and the southern region. Northern region is producing 35.18 million tons and southern region is producing 8.89 million tons of cement per year. Per capita consumption of cement is an indicator of rate with which any country is developing.
Unfortunately per capita consumption of cement in Pakistan is less if we compare it with other developing countries. It is about 131 kg per person annually; whereas world average is about 270 kg. This less consumption is due to the negligence given to the construction sector.
However in last few years’ consumption of cement showed some rise due to increased commercial activities, infrastructural development and increasing demand of constructing houses. Local demand for the year 2019-2020 was 20 million tons.
Pakistan has started exporting cement few years back and has earned repute as a premium quality cement producer in the global market in this short period. Pakistan exported around 7.716 million tons of cement in last few years and earned a foreign exchange of 459 million dollars. There is surely a great potential of growth in this industry in Pakistan.
