Cement prices in Punjab are set to increase by Rs. 75 per bag according to reports.
This price hike is a result of Punjab-based cement manufacturers obtaining a stay order from the court, subject to furnishing bank guarantees.
Earlier this month, the government had determined new rates of royalty on raw materials at 6% of the ex-factory sale price of cement or clinker for manufacturing plants in Punjab. This ex-factory price royalty expense will be accounted for by the cement manufacturers, though initially as a non-cash expense.
To mitigate the impact of the increased royalty, the cement manufacturers are increasing prices by up to Rs. 75 per bag in Punjab.
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According to data from the All Pakistan Cement Manufacturers Association (APCMA), around 48% of the installed cement production capacity in the North region of Pakistan is located in Punjab.
