ISLAMABAD, Pakistan: The National Assembly was informed that the cement price has been increased by 26.5% during the tenure of the Pakistan Tehreek-e-Insaf (PTI)-led present government.
Citing the Pakistan Bureau of Statistics (PBS) as the source, the Minister for Industries and Production Makhdoom Khusro Bukhtiar told the House in a written reply submitted on January 29 that the cement price has been increased from Rs 586 per 50 kg bag in August 2018 to Rs 741.25 per 50 kg bag in December 2021.
Average annual cement prices in Pakistan in last 5 years;
The minister told that there are 25 cement manufacturing companies in Pakistan which are private entities in the private sector, therefore, do not come under the control of the government.
Khusro Bakhtiar told that cement prices are usually fluctuating and are controlled by market forces of demand and supply.
The federal minister said that the Ministry of Industries and Production has convened various meetings with the representatives of the All Pakistan Cement Manufacturers Association (APCMA) to discuss the reasons behind the increase in cement prices.
The reasons of the increase in cement prices as conveyed by the APCMA are as under:
- Significant increase in prices of coal.
- Exchange rate impact of the imported inputs.
- Increase in transportation cost due to increase in prices of petroleum products/diesel.
- Significant Increase in ocean freight from South Africa/Indonesia etc.
- Increase in cost of electricity in terms of fuel price adjustments and increase in tax rates.
