KARACHI: Bestway Cement Limited has planned to commission a greenfield cement clinker plant in Paikhel, district Mianwali, amid improved activity in the construction and development sector in the wake of an amnesty scheme announced by the government.
Analysts have termed this move to be in time that would enable the company to reap benefit from government’s development friendly policies.
The plant will have the capacity to produce 7,200 tonnes of clinker per day, while the facility will also have a heat recovery plant to produce 9 megawatts of energy, the statement issued at the Pakistan Stock Exchange said. The company has entered into an agreement Sinoma International Engineering Co. Limited of China for the technical support for the expansion.
The All Pakistan Cement Manufacturers Association (APCMA) said that the reason behind the new expansion cycle in the industry based on estimated annual sales growth of 10 per cent to 15pc from 2021. The country’s installed cement production capacity will increase domestic cement production capacity by 43pc in the next two years.
The capacity increase seems timely as the demand is gradually improving, said the cement sector analysts. The government policies are favourable for private construction sector while the public sector projects for cheap housing and house building funding are also likely to support the top and bottom lines of the companies, they added.
Pakistan’s economy performed beyond expectations with all major macroeconomic indicators showing positive trend.
Construction activity increased by 8.34pc mainly due to an increase in general government expenditure and private sector construction-related expenditures that led to housing, general government, and other private services to witness a positive growth of 4.01 per cent, 2.20 per cent, and 4.64pc, respectively.