Cement Prices Surge by Rs201 per 50kg Bag, Impacting Construction Costs

KARACHI: Cement manufacturers have raised prices by up to Rs201 per 50kg bag over the past year, significantly impacting construction costs, according to data from the Pakistan Bureau of Statistics (PBS). The average price of a 50kg cement bag reached Rs1,596 for the week ending October 8, up from Rs1,395 a year earlier, marking a year-on-year increase of 14.38 percent.

In a report released on Thursday, Topline Securities highlighted that cement prices have surged by Rs100-150 per 50kg bag during the first quarter of FY27 compared to the same period last year. This increase is primarily attributed to rising fuel costs, driven by elevated international coal and diesel prices. Market sources indicate that cement prices in Punjab are notably higher than those in Karachi.

The rise in production costs is largely due to higher international coal and diesel rates. Adeel Ashraf of Topline Securities noted that Richards Bay coal prices averaged around $113.93 per tonne in the first quarter of FY27, a slight increase from $113.20 in the previous quarter and a significant rise from $90.30 in the first quarter of FY26. This trend suggests that construction costs may continue to escalate, affecting both builders and consumers.

As the construction sector grapples with these rising costs, stakeholders are closely monitoring the situation. Upcoming discussions among industry leaders and policymakers may address the implications of these price hikes and explore potential measures to mitigate their impact on the economy.