LAHORE: Indo-Pak successful line of control peace deliberations between the two countries top army officials can push cement export to 40 percent to 60 percent.
“We expect 40%-60% (200k – 300k tons) rise in quantity exported to India. If the above scenario materializes, it would provide the ailing local cement industry a breathing space to move forward with boosted growth,” experts estimated.
They said that with a surplus capacity of 10 million tons the local cement companies are expected to utilize this capacity, exporting excess capacity to India. Pakistani cement manufacturers have a combined installed capacity of around 44m tones, whereas cement demand stands at around 33m tones (including 25% exports and 75% local).
“Pakistan has already been exporting bulk of cement to Afghanistan while India has so far received only a tiny chunk of 5 percent of total exported cement. Local cement manufacturers are exporting cement to India through Trucks and trains,” they pointed out.
The said that northern region’s cement manufacturers can better exploit the potential. “Cement imports to India through Wagha border is expected to be beneficial for the players in the northern region i.e. DG Khan, LUCK, MLCF, GWLC, BWCL and PIOC as they would face lower transportation cost with improved export margins,” they said.
They recommended relations between Pakistan and India seem to be on the right way as Pakistan and Indian Army personnel has finally met and took a step forward to further enhance relationships.
The better relationship is expected to boost the exported cement dispatches, they concluded.