By Ayesha Mudassar ISLAMABAD, May 09 (INP-WealthPK): The cement industry has demanded that the government formulate conducive policies to enhance investments in the sector, reduce cost of production and increase exports. The demand was made by a member of the All-Pakistan Cement Manufacturers Association (APCMA) while talking to WealthPK. Requesting anonymity, he said that the major hurdle to development of cement industry was excessive duties and taxes. He explained that Federal Excise Duty (FED) was Rs1,500 on import of per tonne raw material, General Sales Tax was 17%, and there were also various provincial taxes on production. He believed that eliminating excise duty would not only prevent tax evasion but also enhance cement consumption at reduced prices. This would also support housing and infrastructure development. The APCMA’s member further told WealthPK that 130 kilogrammes of coal were used in production of just one tonne of cement, and the tariff on import of per tonne coal was 5%. The higher per-unit price of electricity and freight cost also increased prices of cement. Due to high federal and provincial excise tariffs and expensive electricity, the cement sector is not that competitive in the global market, added the APCMA member. Furthermore, he believes that reducing customs duties on raw materials, machinery, plant, and capital goods will reduce capital costs for capacity enhancement. The APCMA member suggested that all forms of cement and clinker should be included in the list of locally-manufactured items. This would not only deter imports of such goods but also boost the industry's capacity utilisation and create additional revenue. The global cement market is expected to grow at a cumulative annual growth rate of 5.1% from $326.80 billion in 2021 to $458.64 billion in 2028. Overall, Pakistan’s cement exports declined by 38.41% to 478,544 million tonnes in March 2022 compared to 776,934 million tonnes exported in the same month last year. Pakistan’s cement industry now provides employment opportunities to tens of thousands of people and contributes more than Rs160 billion to the state exchequer in the form of taxes annually. The sector has been encouraged to increase its production capacity by rising demand from government-owned projects like the Naya Pakistan Housing Programme (NPHP), dam development, and CPEC-related activities. However, the cement industry in Pakistan faces several challenges, including a high reliance on imported coal, substantial regulatory requirements, and exposure to exchange rate volatility. The government must provide great support to the sector by rationalising/reducing taxes and facilitating its operations through the provision of subsidies. Investment in cement industry could be enhanced by adopting policies that promote industrialisation and boost the housing and construction sector.