BEIJING: The export of cement clinkers from Pakistan to China has increased in recent years. Meanwhile, Pakistan has invited big Chinese companies to set up cement factories and is looking for zero duty on these products to boost their exports to China, said Badar uz Zaman, Commercial Counsellor of Embassy of the Islamic Republic of Pakistan Beijing.
China imported 359,621.31 tons of cement clinkers worth around $15 million in 2021 from Pakistan and was one of the main destinations for cement clinkers exports of Pakistan, whereas in 2020 it was 563,622.99 tons worth $ 22 million, according to the official data from the General Administration of Customs of the People’s Republic of China (GACC).
“If we get duty-free access of cement clinkers immediately, we will have equal playing field as in China and the quantity of export will increase exponentially”, Badar uz Zaman said.
The Commercial Counsellor further said that Pakistan has all the minerals required for cement production, like Gypsum and limestone. Pakistan has one of the largest reserves of gypsum in the world, mainly in Kohat, Chakwal, and some other districts, whereas the quality of cement and clinkers Pakistan produces is one of the best in the world.
Vietnam remained the top exporter of cement clinkers to China, followed by South Korea, Japan, Indonesia, and Pakistan in terms of volume. The total exports of cement clinkers to China in 2021 were 27,718,923.22 tons worth US$ 1,417.69 million, according to the official data from GACC.
Badar said that due to COVID-19, the supply chain has been disrupted, the ocean freight cost has increased 5 to 10 times in this period. Pakistani cement companies are offering good prices to the Chinese buyers, but when these additional freight charges are added, other regional exporters have more advantage of price because of the shorter distance.
“We have seen strong interest from large Chinese cement manufacturers to explore the Pakistani market. They are talking with the Pakistani government to set up cement factories in Pakistan. Pakistani Prime Minister also has a very special focus on these areas and had an online meeting with these companies during his visit to China”, he mentioned.
Badar is very hopeful that after the approvals are granted, big Chinese players will set up cement factories in Pakistan, which will give a big boost to the export of the segment not only to China but also to all over the globe. -Agencies
