Cement Prices Set to Increase in Punjab

Cement prices are set to increase by Rs. 75 per bag in Punjab with effect from today or Monday. According to Topline Securities, Punjab-based cement manufacturers have obtained a stay order from the court subject to furnishing bank guarantees. Earlier this month, the government determined new rates of royalty on raw materials at 6 percent of the ex-factory sale price of cement or clinker for manufacturing plants in Punjab. The ex-factory price royalty expense will be expensed/provided for in the accounts (non-cash expense initially). However, to mitigate this, cement prices are set to increase by up to Rs. 75/bag in Punjab. As per All Pakistan Cement Manufacturers Association (APCMA) data, around 48 percent of installed capacity in the North is located in Punjab.