Islamabad: Cement prices in Pakistan have surged from a stable rate of PKR 1200 to an average of PKR 1409 per bag. This increase follows recent economic shifts, including adjustments in the Federal Excise Duty and the implementation of the new budget.

According to Zameen.Com, the price hike varies by city, with Islamabad experiencing a rise to PKR 1458 per bag, Lahore reaching PKR 1500, Sargodha at PKR 1460, and Peshawar also at PKR 1500. The change represents a significant jump since December 2023, when the price stood at PKR 1244 per bag, marking an increase of PKR 169 primarily within the last week.

This price adjustment could potentially affect smaller construction projects and budgets. The domestic cement offtake in the fiscal year 2024 decreased by 5% from the previous year and 20% from 2022, totaling 38 million tons—the lowest in the last seven years. Despite these challenges, cement producers have sustained their profitability through cost management, investments in energy-efficient technologies, and a strategic focus on exports. In fact, exports in FY’24 saw a 56% increase from the previous year and contributed 16% to the sales mix, helping to cover fixed costs.

For end users, the uptick in cement prices mirrors wider trends in the costs associated with construction, including materials, labor, and transportation. The industry anticipates similar challenges for the fiscal year 2025. Nonetheless, cement manufacturers have demonstrated resilience, with combined post-tax earnings for the first nine months of FY’24 showing a 17% increase, suggesting a stable industry outlook into June 2025.