Karachi: Pakistan's fiscal year 2025 (FY25) budget introduces measures tackling significant economic challenges, such as rising circular debt and a low tax-to-GDP ratio, through state-owned enterprise privatization, tax reforms, and increased infrastructure spending. These developments are aligned with a staff level agreement for a $7 billion IMF deal, which is designed to stabilize the national economy. Additionally, recent cuts in interest rates suggest a potential for economic growth, emphasizing the need for political stability and sustainable fiscal measures to ensure long-term prosperity.

According to information available from the Pakistan Stock Exchange (PSX), the cement sector may face hurdles as high interest rates and an increased Federal Excise Duty on cement bags could suppress domestic demand by escalating construction costs. Nevertheless, the Public Sector Development Programme (PSDP) might act as a catalyst for the industry. Meanwhile, export activities face their own challenges, including heightened freight costs, intense global competition, and policy shifts that may hinder export capabilities.

On an international front, Lucky Cement is set to enhance its operational efficiency and profitability with the introduction of a new clinker line in Iraq, anticipating strong demand for its international operations. This move is part of the company’s strategy to maintain a competitive edge in the global market.

In the chemical sector, Lucky Cement leverages its diverse product portfolio to mitigate adverse impacts effectively, maintaining a commitment to delivering consistent and sustainable outcomes by closely monitoring costs.