Data from the All Pakistan Cement Manufacturers Association (APCMA) show that exports have been in decline since July 2015. Exports declined by 24% year-on-year to 3.4Mt in the seven month period between July 2015 and January 2016 compared to 4.5Mt in the same period in the previous year. However, domestic cement consumption has risen in the same period, according to local press.

"A substantial reduction in the exports has drastically affected foreign exchange earnings of the country and cement makers are finding it difficult to maintain their existence in export markets because of high costs of business in Pakistan and the absence of export incentives," said an APCMA spokesman.

Cement despatches between July 2015 and January 2016 increased by 6.4% year-on-year to about 21Mt compared to about 20Mt previously. Cement plants sales volumes in the north of the country grew by 14% year-on-year to 14.8Mt from 13Mt. These producers saw exports fall by 22.4% to 2.2Mt from 2.8Mt. Cement plant sales volumes in the south grew by 23% year-on-year to 3Mt from 2.5Mt. These producers saw exports fall by 29.2% to 29.2% from 1.8Mt.

The APCMA recommended that the government should impose an additional 20% duty for cement imports alongside the existing customs duty to protect the local cement industry. It added that taxes on energy inputs such as a gas and coal should be reduced and measures put in place to make exports more competitive.