Investor Presentaiton

. Cement Demand Side | Local PACRA PSDP and Cement Depatches 45 1,800 • Pakistan's local cement dispatches for FY20 were recorded at ~40mln MTs (FY19: ~40mln MTs). Cement demand is highly correlated to the GOP's spending in development projects through Public Sector Development Program (PSDP). Due to the widening fiscal deficit, PSDP spending has significantly reduced in the past couple of years. Development spending by the GoP was recorded at PKR 1,155bln during FY20 as compared to PKR~1,584bln in FY18 with a cumulative decrease of ~28%. 40 40 35 30 25 Despite declining PSDP, local cement dispatches averaged around ~40mln MTs in the last three years supported by CPEC related projects and increase in local construction activity. 20 . To stimulate construction activity, the GoP has announced a construction relief package of PKR~100bln during FY20. The package includes tax incentives, waivers and subsidies for builders, developers and property owners. According to industry experts, one of the main incentives of the package is that one that does not require people to declare their sources of income before investing in construction related projects, which will increase private investment in construction related projects substantially. 15 10 5 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Cement Dispatches (MMT) PSDP (PKR billion) 1,600 1,400 1,200 1,000 800 600 400 200 Source: APCMA, Constructech, Economic Survey, Dawn 9

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