Pakistan cement exports to Afghanistan have plummeted by 10 percent annually, owing to availability of cheaper Iranian cement there. The Pakistan cement manufacturers claim that the energy crisis and increasing prices of petroleum products have made its product uncompetitive in Afghanistan. Afghanistan has been the steadiest market for the Pakistani cement industry, according to an ARI report Thursday. The U.S. sanctions on Iran had been an impediment for Iranian exports to penetrate in Afghanistan. This allowed Pakistan to benefit with exports to the country growing at a four-year CAGR of 14 percent. The overall cement exports plunged by 9.2 percent YoY to 0.76Mt. Total cement sales in July 2012 were registered at 2.81Mt compared to 2.86Mt last year, depicting a decline of 1.6 percent YoY. The recent pledge of US$16bn at an international donor conference as civilian aid for economic development of Afghanistan is likely to bolster construction activity in the country. This should increase the demand for Pakistani cement in the long run.