Cement price fell by Rs 10-12 per bag

ISLAMABAD: The price of cement in the country fell by Rs. 10-12 per bag to Rs. 418-420 per bag.

Stock analyst Zaheer Ahmad told APP that the price decline was due to slow down in construction activities as most of the labor force was employed for harvesting wheat which was likely to be completed by end of May.

He said that the cement was available in surplus in the industries and the industrialists want to increase their liquidity by selling the commodity.

He, however said that the decline in price was for short term and it would revert back to Rs. 430-432 per bag soon because of increase in demand of cement in near future.

Zaheer said that as the government is increasing budget allocation for Public Sector Development Program (PSDP) for the next fiscal year, the construction work in the country would increase. "With the result, demand of cement would also increase and its price would be reverted ultimately".

The government has decided to increase the budget allocation for PSDP from Rs. 730 billion in 2011-12 to Rs. 825 billion for the year 2012-13.

The export of cement to India is likely to increase due to the removal of non-tariff barriers (NTBs) between the two countries.

Meanwhile, stock market has responded negatively to the news of decline in cement prices and index lost more than 200 points.