November 20, 2008

Pakistani builders demand ban on export of cement

Daily Times report quoted Pakistan’s Association of Builders and Developers as saying that the government should ban the cement export and allow its import, so that the menace of the cement price hike could be controlled in the country.

Mr Hafeez ur Rehman Butt former chairman Association of Builders and Developers said that the cement manufacturers are doing an unrealistic price hike without any reason and any justification. He said that “The price of 50 kilogram bag was around PKR 200 to PKR 220 in February 2008 but now the prices are almost double and have reached to PKR 380 to PKR 400.”

He said that we have a surplus of cement in the local market but the manufacturers have created a fake shortage of cement in the local market by exporting it on large scales.

He added that the government increased GST from 15% to 16% and FED from PKR 750 to PKR 900, but the manufacturers have increased prices unrealistically and now they stood at PKR 380 to PKR 400. In the federal budget 2008 or 2009, the government has imposed PKR 50 as federal excise duty on a square foot of the constructed houses if the government did not reduce it then the housing industry would have to face more difficulties.