ICCI wants govt to save cement industry

The local cement industry is in dire need of government attention as the growth of the cement industry is considered a major indicator of economic activity.
Yassar Sakhi Butt, President Islamabad Chamber of Commerce and Industry (ICCI) expressed deep concern over a decline of 1.64 percent in exports of cement compared with the dispatches achieved in July 2011.
He said that major factors responsible for a downturn in the industry include exorbitant increases in cost of fuel, high interest rates and low prices in international market. However, he said that increasing construction activity in the country could have positive effects on cement industry.
The ICCI President said that cement is one the major commodities that is abundantly available in Pakistan and could be exported to neighbouring countries, especially through the land route. He said that Pakistan’s cement sector still faces non-tariff barrier at Indian borders, despite various measures taken by the government to enhance bilateral trade between two countries.
Yassar Sakhi Butt was of the opinion that exporting cement to India could take a quantum leap if the non-tariff barriers are removed, which would help maintain export growth to the neighbouring country as it is also a major importing country of Pakistani cement.
He said that the cement sector was contributing above Rs30 billion to
the national exchequer in the form of taxes and serving the nation by providing job opportunities to more than 150,000 people. Thus, even though there is a dire need that all cement units should operate at their maximum capacity and play a vital role in building up the country’s economy as well as maintaining foreign exchange which would only be possible if our neighbouring countries removed tariff and
non-tariff barriers on Pakistani cement, he maintained.
The ICCI President stressed that the Government explore new destinations for the export of cement as Sri Lanka has also shown interest in importing huge quantity of cement from Pakistan every month. With the industry being able to grasp the opportunity offered, it may secure a significant share of the Sri Lanka market by
supplying required quantity of cement annually, he added.