Karachi: A hike in cement prices was witnessed in the South Region by PKR 15 per 50-kg bag, making the new ex-factory prices of Lucky
Cement and Falcon brand of Attock Cement reach at PKR 375 and PKR 380 per bag while, the retail prices of cement have reached to PKR 410-415 per bag in the South Region.
According to the Budget FY12, Federal Excise Duty (FED) on cement has been reduced by PKR 200 per ton to PKR 500 per ton in the current fiscal year while, a reduction of the same amount would be made in the next two budgets. Moreover, the international coal prices have also declined from USD 150 to USD 130 per ton, which gives space to the manufacturers to decrease cement prices.
However, cement prices on the other hand have been raised due to an absence of a monitoring authority which could regulate the prices in the cement industry. A hike in cement prices along with international coal prices on the lower side would result in an improvement in the profitability of cement manufacturers as the local sales are expected to increase due to an allocated budget of PKR 730 bn for the Public Sector Development Plan (PSDP) in FY12.