The China-Pakistan Economic Corridor (CPEC) has significantly envisaged economic and infrastructural development in Pakistan. Since the inception of the CPEC project, Pakistan has made it to the list of fastest-growing construction markets in the world. It is anticipated that it will continue to progress in the construction sector at the rate of 12% per annum for the next five years. The One Belt, One Road strategy alongside CPEC will also open new avenues for employment. This will be a game-changer for a country like Pakistan where the inefficiency of highway networks accounts for only 3% of the road network, leading to a significant loss in GDP per annum. You check the Latest Prices of Cement.
The infrastructural development will have a direct impact on the construction industry, particularly the cement industry in Pakistan. The consumption of cement is directly proportional to the economic growth of the country. Pakistan has abundant reserves of limestone and clay, both of which are the base materials of cement. Pakistan is the 14th largest manufacturer of cement and its 5th largest exporter in the world. Despite this, the per capita consumption is relatively low i.e., 140 kg as compared to the global average of 400 kg per capita.
Cement Production in Pakistan
According to estimates, the total cement production capacity of Pakistan is up to 45 million tons. The figures indicate that the cement industry has a huge untapped potential. However, there is a transition underway and ongoing projects like CPEC will contribute to increasing the local demand for cement. The rise in demand for cement is also in line with the 29% budget allocation of Public Sector Development Programs (PSDP).
The cement capacity utilization of Pakistan witnessed a surge during the past year. It rose to a record-high i.e., 88 percent since the past decade. Meanwhile, the exports of cement went down by 19 percent. The increase in local consumption of cement is fairly attributed to Chinese-financed developmental projects. In the past year, 21 cement companies have 47 percent increase in their cement stocks which outpaced the benchmark of stock measures of the country.
Positive outcomes are speculated for the cement industry in years to come. As an indicator of economic development, the success of the cement industry is gauged through its value addition in the Gross Domestic Product (GDP), tax payment, export receipts, employment opportunities, and overall revenue it generates. Additionally, the transportation industry is a direct beneficiary of the cement industry as well.
Apart from the cement industry, the steel industry will also highly benefit from the gradual increase in demand and opportunities in the construction industry. Naya Pakistan Housing Scheme is one such prospect. Some of the highly sought-after cement companies in Pakistan are as follows:
The emerging landscape of the construction sector will also be rewarding for new market entrants, favoring market disruption like switching from retail to the digital world. New entrants like Zarea.pk are already setting the example.
For the first time in Pakistan, Zarea.pk is offering digital payment solutions for the Online Buying of Construction Materials. You can not only browse numerous options of construction materials at Zarea.pk but can also get all the materials delivered to your door-step. With the technical expertise of Zarea.pk procurement of construction materials doesn’t seem like a complicated process anymore. You can also compare Daily Construction Material Prices in Pakistan at Zarea.pk.