Islamabad: After a period of stability around PKR 1200, cement prices have recently adjusted, now averaging PKR 1409 per bag, as reported in a news article on July 10.
According to the details, the prices vary, with Islamabad at PKR 1458, Lahore at PKR 1500, Sargodha at PKR 1460, and Peshawar at PKR 1500. These changes follow the new Budget and an increase in the Federal Excise Duty (FED) on cement.
Since December 2023, when the price was PKR 1244 per bag, PKR 169 per bag has increased, primarily in the past week. These adjustments may impact smaller projects and budgets. Domestic cement offtake in FY’24 was down 5% compared to FY’23 and 20% compared to FY’22, totalling 38 million tons, the lowest in seven years.
Cement producers have maintained profitability by managing costs, investing in energy-efficient technology, and focusing on exports. In FY’24, exports increased by 56% from FY23 and 35% from FY22, contributing 16% to the sales mix and covering fixed costs. For end users, the adjustment in cement prices reflects broader trends in construction costs, including materials, labour, and transportation. FY’25 is expected to see similar challenges as FY’24.
However, cement manufacturers have shown resilience, with post-tax combined earnings growing by 17% in the first nine months of FY’24, indicating a stable outlook for the industry into June 2025.
As a graduate in English Literature, Zohaib believes that words are not just a mere figment of imagination. It takes wisdom to be good at them. Following this reason, he is pursuing his career as Public Relations and Content Specialist at Zameen.com.
