The Impact of Cement Manufacturing on Economic Development of Pakistan: The Analysis of Cement Industry
International Journal of Research (IJR), Vol. 2, Issue 2, February 2015
16 Pages Posted: 6 May 2015
Date Written: 2014
This paper investigates to explain that Cement Industry is an important component of Economic sector in Pakistan which has a substantial impact on the financial stability and economic development in the country. The cement production was a small industry in the early days of Pakistan but with the passage of time, it grew with a very good pace. At present, it has turned into an important industry in the country by contributing to employment in labour force, urbanization, modernization and foreign reserves. In the recent era, Pakistan cement industry entered into the export market after fulfilling the domestic demand of cement. Although cement industry has many challenges in Pakistan due to various political, economic and law and order situations but this sector has still performed brilliantly during the last two decades. The worst challenges faced by this industry include law and order issue, unstable political conditions, energy crises and ignorance of public sector. This industry’s energy cost comprises between 50 to 60 percent of the total Cost of Goods Sold. The unfavorable law and order situation, particularly in the northern part of the country resulted in the stagnant domestic demand of cement for several years. Despite of all the challenges the cement industry has faced, this sector is still contributing in the economic development of Pakistan significantly which proves it a key of Pakistan’s economy.
Keywords: Cement Industry, Consumption Rate, Economic Development, Pakistan Economy, Production
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