The decision of the Central Board of Revenue (CBR) not to release sub-standard cement imported from China to the local market has exposed the government claims that permission of the duty-free imported cement along with freight subsidy will bring down the cement prices in the country.
The customs authorities at the Karachi Port have already termed the cement imported from China as "sub-standard". According to specification, the standard of the cement should be at less than 4 percent Magnesia (MGO). But after the examination by Pakistan customs, which is of course a government department, the strength of imported cement was found to be 4.25-percent MGO. Higher presence of MGO increases expansion of cement consequently loosing its binding strength.
Construction experts opine that the imported commodity with higher MGO may work for some specific construction requirements but it does not suit the general requirements of the construction industry. Due to this issue, the government decision of allowing import of the commodity by road, rail or sea with zero-rated duties and Rs 60 freight subsidy per bar ton and 30 percent reduction in railway fares, seems to be just an attempt to benefit a few.
Some builders are of the view that there will be a great risk involved in using the sub-standard imported cement by consumers. An official in cement sector said that the cement prices have come down despite the fact that the imported commodity has yet to reach the market in huge quantity.
This has exposed the government's claim that the decision of allowing cement import has resulted in decrease in the cement prices, he said.
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