Islamabad: The Ministry of Commerce has suggested ‘concessionary rates of electricity to cement industry on the exportable quantity of cement and clinker’, as per a news report published on December 11.
According to the ministry, the cement industry has vast potential to boost national exports. In 2019-20, Pakistan exported USD 266 million worth of cement – a value which is likely to grow substantially in future as a result of new business policies.
The cement and clinkers made in Pakistan are exported to major export destinations like Bangladesh, Madagascar, Sri Lanka, South Africa, China, etc.
However, the cement industry stakeholders have expressed grave concerns to the commerce ministry over the high energy costs that add significantly to the production costs and strains the industry competitiveness in the international market.
The stakeholders have requested the government to declare the sector ‘partial export industry’ and incentivise electricity rates – as extended to other export industries. The reduced power rates will impact product cost and improve sales in the international market.