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Cement Prices in Punjab to Rise as Provincial Govt Increases Royalty Rates

Published

2 years ago

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Punjab-based cement manufacturing plants are set to face a major shock as rates of royalty on raw material have been determined at 6 percent of the ex-factory sale price of cement or clinker.

As indicated by a notice gave by the Punjab Mines and Mineral Division on Friday, the recently endorsed paces of sovereignty are powerful from July 01, 2024.

In a note, business house Topline Protections said this notice will have a gradual value effect of Rs.50 per sack because of extra eminence as before the flow of this warning sovereignty remained at Rs. 20 for every pack as would be considered normal to increment to Rs. 70 for each pack for Punjab based cement producers.

The financier house said organizations are presently assessing the notice and will give the effect on purchasers as far as higher retail costs.

Topline said that it accepts this might make a uniqueness of costs in various territories. In financial plan FY25, the common state run administrations of Punjab and Khyber Pakhtunkhwa previously expanded eminence on limestone from Rs. 120 for each ton to Rs. 250 for each ton.

In any case, this warning of 6% of the ex-processing plant cost is probably going to override that Rs. 250 for every ton warning.

Benefited from cement

The national government additionally expanded administrative extract obligation on cement by Rs. 100 for each pack in the financial plan for FY25. Subsequently, cement sack costs have proactively expanded by around 15% month-on-month (Mother) in July 2024 to around Rs. 1,500 for every sack in the North, as per information gave by the Pakistan Agency of Measurements (PBS).

Cement costs to go up in Punjab

Topline said it anticipates that Punjab based producers should ultimately additionally expand their costs by Rs. 30-50 for every pack to pass on this effect. Notwithstanding, it said that organizations have connected with their legitimate groups which could prompt moving toward courts against this choice.

Organizations affected by an expansion in eminence

According to All Pakistan Cement Makers Affiliation (APCMA) information, around 48% of introduced limit in the North is situated in Punjab.

Among the organizations that will be impacted are, Bestway Cement (BWCL), Dandot Cement (DNCC), Dewan Cement (DCL), DG Khan Cement (DGKC), Fauji Cement (FCCL), Fecto Cement (FECTC), Flying Cement (FLYNG), Gharibwal Cement (GWLC) and Maple Leaf Cement (MLCF).

Out of these, MLCF, FCCL, and DGKC have 100%, 48%, and 50 percent of North Limit situated in Punjab. In June 2024 FCCL, DGKC, and MLCF produced 53%, 35%, and 100% of complete homegrown dispatches from Punjab-based plants.

The business house said this is unbiased to negative for Punjab-based cement producers as their volumes of the boundary regions (interfacing with different areas) may get redirected by different territories players.

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Career

Dubai Jobs 🇦🇪 | Job Seekers Ke Liye BIG Update! 🚨 | Jobs in Dubai | Pakistan Jobs

Published

5 days ago

on

September 13, 2026

By

Pakvsworld latest jobs banner featuring Dubai Jobs, UAE Jobs, Pakistan Jobs and international job opportunities

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