Cement prices are set to increase by Rs. 75 per bag in Punjab with effect from today or Monday.
According to Topline Securities, Punjab-based cement manufacturers have obtained a stay order from the court subject to furnishing bank guarantees.
Earlier this month, the government determined new rates of royalty on raw materials at 6 percent of the ex-factory sale price of cement or clinker for manufacturing plants in Punjab.
The ex-factory price royalty expense will be expensed/provided for in the accounts (non-cash expense initially). However, to mitigate this, cement prices are set to increase by up to Rs. 75/bag in Punjab.
As per All Pakistan Cement Manufacturers Association (APCMA) data, around 48 percent of installed capacity in the North is located in Punjab.
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