ISLAMABAD, Pakistan: The prices of Cement has increased by approximately 33.16 percent in the present regime i.e. March-July 2022, the National Assembly was told.
To a question in the House, the Minister for Industries and Production Syed Murtaza Mahmud told in writing that there are 25 cement manufacturing companies in the country which are private entities in the private sector therefore, does not come under the control of government.
The House was told that Cement prices usually remain fluctuated and are controlled by market forces of demand and supply.
It was further told that the Ministry of Industries and Production has convened various meetings with the representatives of All Pakistan Cement Manufacturers Association (APCMA) to discuss the reasons behind increase in Cement prices.
The reasons of increase in cement prices as conveyed by APCMA are as under:
- 45% increase in prices of coal from US$ 258.75/ ton to US$ 410/ ton (April 1, 2022 to July 15, 2022); (source: www.tradingeconomics.com)
- Exchange rate has been depreciated by 14% from April 1, 2022 to July 15, 2022 which has impacted the cost of imported inputs; (source: sbp.org.pk)
- Increase in transportation cost due to increase in prices of petroleum and diesel by 53.6% and 63.7% respectively from April 1 to July 15, 2022; (source: www.pso.com)
- Significant Increase ocean freight from South Africa/Indonesia by 12.5% from April 1 to July 15, 2022, etc.; (source: APCMA)
- Increase in cost of electricity in terms of fuel price adjustments and increase in tax rates by 16.9% from April 1 to July 15, 2022 (source: APCMA).
