KARACHI: Pakistani exporters have raised cement prices for Afghanistan market from $ 37-40 per ton to $ 50 per ton, market sources said Thursday.
Cement exports to Afghanistan currently represent 50 percent of the total exports from Pakistan where major quantities are shipped by the companies having proximity to the north western border.
According to senior analyst of KASB Securities, Shagufta Irshad said that Pakistan has exported 4.7 million tons to Afghanistan during the year 2010-2011 and 2.5 million tons during the first half of 2011- 2012.
She said this increase would have a positive impact on the earnings of these companies in the current financial year and also enhance export earnings for the country.
Pakistani cement currently dominates in the central and north region of Afghanistan where major reconstruction activities are going on.
She pointed out that companies having exposure to Afghan market include Bestway, Cherat, Lafarge Cement, Fauji Cement and DG Khan Cement.
DGKC has higher exposure to Afghan market than Lucky as its both plants are located in the northern region.
She said that exports to Afghanistan currently contributes 30 percent of DGKC's total exports compared 20-25 percent for Lucky Cement.
Shagufta noted that this increase will bring in a rise of 16 percent and 3 percent in the earnings for DGKC and Lucky respectively in FY12.
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