Cement manufacturers are ruing the decision to increase their capacities as the cement consumption remained stagnant in past four years while the exports are also on constant decline forcing the sector to operate at 69 per cent installed capacity. A spokesman of All Pakistan Cement Manufacturers Association (APCMA) said that it is not possible for the industry to service its high cost loans carrying high interest rates by operating at low capacities.
“This is the reason that the non-performing loans of this capital intensive industry have exceeded 22 per cent and are still rising,” he said. “During the first eight months of this fiscal year the industry despatched 20.5 million tonne of cement recording a nominal rise of 3.48 per cent against the despatches of 19.74 million tonne during the same period last year,” he added.
