Cement Prices Surge by Rs201 per Bag in Pakistan

News Desk

KARACHI: Construction costs across Pakistan have escalated significantly over the past year, driven by a sharp rise in cement prices, which have climbed by up to Rs201 per 50kg bag.

According to the latest Sensitive Price Index (SPI) data released by the Pakistan Bureau of Statistics (PBS), the national average price for a 50kg cement bag reached Rs1,596, marking a 14.38 percent year-on-year increase from Rs1,395 recorded during the corresponding period last year.

Market analysts attribute the relentless upward trajectory to rising input expenses, particularly elevated global fuel and energy rates.

A report by Topline Securities highlighted that cement manufacturers raised prices by Rs100 to Rs150 per bag during the first quarter of the current fiscal year compared to the same period last year.

Adeel Ashraf, an analyst at Topline Securities, noted that Richards Bay coal prices averaged approximately $113.93 per tonne in 1QFY27, up substantially from $90.30 per tonne in 1QFY26, severely straining production margins alongside soaring local diesel tariffs.

The persistent hike in building material prices poses serious challenges to Pakistan’s struggling construction and real estate sectors, which serve as crucial drivers of economic activity and employment.

Higher input costs are impacting both residential developers and public infrastructure projects, forcing contractors to revise project budgets upward and delaying private housing initiatives.

Furthermore, regional disparities persist, with market sources confirming that cement prices in Punjab remain notably higher than those in Karachi due to local supply dynamics and transport overheads.

As global coal prices remain volatile and domestic energy tariffs show little sign of relief, industry experts warn that construction activity may slow down further in the coming quarters.

Sector stakeholders are urging the government to rationalize import duties on alternative fuels and offer relief on energy tariffs to cushion local manufacturers, stabilize construction costs, and safeguard infrastructure growth across the country.