Pakistan’s cement industry has shown tremendous progress since Independence. In 1947, there were only four operational cement units in West Pakistan with the total production capacity of approximately half a million tonnes per annum. Demand during the same period was estimated at over a million tonnes. The industry experienced gradual growth as five plants were set up in the 1950’s with a total capacity of 2.8 million tonnes with four more set up in the 1960’s. These were the Ayub years when the construction industry went through a boom as demand grew because of an expanding economy and by 1969 the cement industry of Pakistan had 14 operational cement plants with an annual rated capacity of 3.3 million tonnes.
Following this expansionary phase of the cement industry, the Economic Reforms Order of 1972 brought about nationalization of the private sector plants and resulted in a relatively stunted growth of the industry in the subsequent years. Nationalization merged state owned plants to form the State Cement Corporation of Pakistan (SCCP) and this “State Cement era” lasted from 1972 to 1992. During these three decades, production increased from 3.5 million tonnes to a mere 8.4 million tonnes by 1992 and Pakistan’s cement requirements were largely being met through exports which had started in 1977 and continued till 1995.
Government policy moved towards denationalization in 1977-1988 and emphasis was placed on housing and construction. To meet demand in the 1980s, the government allowed 7 more units to be set up by the private sector housing a total capacity of 2.54 million tonnes and 4 plants were set up by the SCCP in the public sector. By the end of this period 24 cement plant operated in Pakistan.