Federal Minister of Industry and Production Hammad Azhar took note on Sunday of rising cement prices in Pakistan specialty the northern region, including Punjab and Khyber Pakhtunkhwa.

From June 25, 2020 to July 16, 2020, the price of a 50 kg bag of cement in partner cities has increased by 40 to 45 rupees. An increase in the price of cement bags from Rs7 to Rs26 was also observed in the other cities of Punjab.

On the other hand, cement prices in the Sindh and Baluchistan regions have fallen, with prices in Karachi at 11 rupees, in Hyderabad at 30 rupees and in Khuzdar and Quetta at 10 rupees.

According to documents, current cement prices were given to Rs547 in Islamabad, Rs539 in Rawalpindi, Rs553 in Gujranwala, Rs530 in Lahore, Rs681 in Karachi, Rs610 in Larkana and Rs620 in Khuzdar.

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On July 23, the Pakistan Bureau of Statistics (PBS) announced the price of a 50 kg cement bag for 553 rupees. However, according to representatives of the cement industry, the price reported by PBS was the highest price for brands and not the average price.

Earlier, the government had cut federal cement tax on rupees from 2 rupees per year. Kg to 1.5 rupees per. Kg. The tax authorities had estimated that cement prices should be reduced by Rs. 25 pr. Bag. However, this decrease has not been observed.

In the last week of April, it was reported that the cement industry had increased the price of a 50 kg cement bag by about 55 rupees, driving up prices in Punjab and KPK.

In May, the Federal Minister of Industry and Production asked the cement companies to reverse the price increase, but the cement producers refused.

CCP Investigation

According to sources, the Pakistan Competition Commission (CCP) is investigating alleged cohabitation between cement companies that caused the reported price increase.

The CCP also previously issued an order under which all Pakistani cement producers (APCMA) and its members were fined 6.4 billion rupees. APCMA and its members have been able to obtain a residence permit from the court, so that CCP has so far been unable to rule.

According to sources, the Lahore Supreme Court is expected to release a verdict on CCP's fine against APCMA in the coming days after 10 years.

Hammad Azhar said that few brands increased prices in Punjab and KP, while cement prices in Sindh and Baluchistan fell slightly. However, he was unable to determine the reasons for the price fluctuations and the difference.