Pakistan: Cement price dips by 26 percent in one year

Due to inflationary pressure and cut in developmental projects under Public Sector Development Programme (PSDP), prices of cement have significantly dropped during the last few months and might not go up in next couple of months, sources here on Monday informed The Nation.

According to the official figures, prices of the cement in the country has dropped by over 26 percent in one year and reached to Rs. 272 per 50 kg bag while its average price in last year was around Rs. 370. Prices of cement are fluctuating between Rs. 250 per bag to Rs. 315 per bag in different cities of the country.

Sources informed that in the next few months, the prices might go down to Rs. 230 per bag not only because of the said reasons but also due to the fact that construction activities did not start in winter. During the last one week, prices of the cement in different cities are as follows: Rawalpindi, Rs. 250 per bag; Islamabad, Rs. 260; Lahore, Rs. 250; Karachi, Rs. 295; Peshawar, Rs. 241; and Quetta, Rs. 315 per 50 kg bag.

It is important to mention here that in the first quarter (July-September) of the current financial year 2009-10, all the major developmental projects of the ministries were halted because of financial constraints in the country. Meanwhile security situation of the country, especially in NWFP, has also affected the developmental projects.

In last fiscal year 2008-09, prices of the commodity were above Rs. 360 per 50 kg bag and in order to provide some relief to the said sector, the Government eliminated five percent Federal Excise Duty (FED) in the annual budget 2009-10.
At the time of annual budget, prices of the cement were around Rs. 360 per 50 kg bag and it went down by Rs. 15 per bag after eliminating five percent FED on it.

Market sources further informed TheNation if Government did not start developmental projects soon in the country, the cement industry would face further problems in the upcoming months.

From China Cement (2009-11-25)