Islamabad: A dramatic increase in the cost of cement, with prices reaching as high as Rs1,500 per 50 kg bag, is significantly affecting construction projects across Pakistan, particularly in cities like Lahore and Peshawar.

According to Zameen.Com, the Pakistan Bureau of Statistics has reported substantial regional variations in the price hikes. Larkana saw an increase of Rs207 per bag in just one week, while cities like Peshawar, Bannu, and Quetta experienced rises of Rs177, Rs163, and Rs160 respectively. Other notable increases include Rs160 in Sargodha, Rs155 in Multan, and Rs151 in Islamabad. Both Karachi and Lahore reported a rise of Rs150 per bag. Additional increases were noted in Gujranwala (Rs147), Faisalabad (Rs140), Sialkot (Rs130), Hyderabad (Rs120), and Rawalpindi (Rs107), with Khuzdar seeing a modest increase of Rs23.

The spike in prices follows a recent federal budget decision to raise the Federal Excise Duty on cement from Rs3 to Rs4 per kilogram, significantly impacting construction and property development nationwide. Meanwhile, despite domestic challenges, Pakistan's cement exports have seen a notable increase, jumping 72.16% in May 2024 compared to the previous year, as stated by the All Pakistan Cement Manufacturers Association. With exports totaling 917,962 tons, up from 533,215 tons the previous year, the sector demonstrates strong international demand despite the domestic price pressures.