The Industries and Production Ministry has recommended to the government to allow cement import from India to bridge the demand-supply gap in the country, official sources told Business Recorder here on Thursday.
"We have recommended to the government that import of cement from India should be allowed through Wagah border to minimise freight charges," the sources added.
The Economic Co-ordination Committee (ECC) of the Cabinet, which is scheduled to meet on Friday with Prime Minister Shaukat Aziz in the chair, will consider the proposal.
The sources also said the ministry has also asked the Earthquake Rehabilitation and Reconstruction Authority (ERRA) to directly import cement for its hectic reconstruction activities as in case of local procurement the prices would again shoot up.
"ERRA will start its reconstruction activities from May which is also the peak time of construction in other parts of the country and any delay in import will further make the situation adverse," the sources added.
The sources said though All Pakistan Cement Manufacturers Association (APCMA) has been asked to enhance their production capacity above 92 percent, but the demand and supply situation may not be improved as per the expectations.
The meeting between Industries and Production Minister Jahangir Khan Tareen and APCMA last week was not encouraging, as there was no concrete indication from the association regarding reduction in prices until new plants become operational.
However, the manufacturers had assured the minister that moratorium on export of cement is strictly imposed from April which was being monitored strictly through the Central Board of Revenue (CBR), the sources maintained.
The sources also said that cement prices have come down in different parts of the country due to measures taken by the government, but there were still chances of increase in the prices in the days to come, if import is not allowed from the neighbouring country.
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