CCP issues market study report on Cement sector to enhance competitiveness

The Competition Commission of Pakistan (CCP) has released a Cement sector study report on the cement industry for market competitivenes in the sector.
According to the report issued here on Monday, the increase in cement prices is not solely due to supply and demand but also a result of taxes and policy shortcomings.
The share of taxes and duties in cement prices has reached up to 38%, meaning nearly half of the cement price consists of taxes.
The price of a 50 kg cement bag has increased from Rs. 822 to Rs. 1,091.
Despite production capacity doubling, utilization remains at only 53%.
A decline in cement consumption has been recorded in both northern and southern regions.
In southern regions, a few large companies dominate the market.
Monopoly over coal imports is contributing to increased costs.
Differences in transport regulations across provinces are creating cost imbalances and varying mineral royalty systems are affecting competition.
Smuggled and counterfeit cement is harming the market.
Accorrding to study , fake cement can pose a risk to public safety and proposed reforms in the cement sector are essential.
There is a need for improvements in tax policy, energy pricing, and overall systems.
If immediate reforms are not implemented, construction costs will rise further,report said.
Failure to reform the cement sector will negatively impact housing and industry.
The CCP has proposed a comprehensive reform strategy for the cement sector.
It recommends restoring competitive balance and removing barriers.
There is an emphasis on facilitating entry and expansion in the cement sector.
The development of the mineral resources sector has been deemed essential,report said.
A proposal has been made to harmonize axle load regulations across provinces.
There is a need to modernize the transportation system and reforms are necessary to reduce costs and improve efficiency.
Policy measures have been recommended to ensure effective competition in the cement sector in report issued.