The cement price in Pakistan has climbed Rs201 a bag in a year, according to official weekly price data. The average 50kg bag cost Rs1,596 in the week to 8 October, against Rs1,395 a year earlier, a rise of 14.38%. Coal and diesel did get dearer over that period, but cost estimates cited by Dawn suggest those two inputs account for only about Rs35 of the increase. For builders, property developers and anyone pricing a construction contract, the size of that gap is the story.
The short version
- A 50kg bag of cement averaged Rs1,596 in the week to 8 October, up Rs201 (14.38%) on a year earlier, according to the Pakistan Bureau of Statistics’ weekly price index.
- Sources quoted by Dawn estimate that dearer coal added about Rs20 a bag and dearer diesel about Rs15, and say a rise of Rs50 to Rs70 would have been justified.
- Demand is holding up: domestic despatches rose 7.79% in July to September, while exports fell 11.32%.
- Listed cement makers are projected to earn Rs32.4bn in the quarter, up 16% on a year earlier.
What happened
The Pakistan Bureau of Statistics’ Sensitive Price Indicator for the week ended 8 October put the average cement price at Rs1,596 a bag, Dawn reported on 11 October. In the week ended 9 October 2025 it was Rs1,395. Brokerage Topline Securities estimated that prices rose by Rs100 to Rs150 a bag in the first quarter of the 2026-27 fiscal year (July to September) compared with the same quarter last year. Dawn noted that prices in Punjab were higher than in Karachi.
Input costs have risen. Richards Bay coal, the benchmark for the imported coal that fuels most kilns, averaged $113.93 a tonne in the quarter, against $90.30 a year earlier. Including freight, the average was about $133 a tonne, against $113. Diesel, which moves cement from plant to market, is also more expensive: it costs Rs396.85 a litre from 13 October, according to the latest daily notification. Even so, sources quoted by Dawn estimate that the roughly $20-a-tonne rise in coal added at least Rs20 a bag, and higher diesel about Rs15.
Cement rose far more than estimated cost increases
Rupees per 50kg bag, change over one year to the week ended 8 October 2026
Why it matters
Cement is one of the biggest single costs in any building project, so a 14% rise in the cement price feeds straight into the cost of homes, shops and factories. It also lands at a time when other costs are climbing: wholesale prices are rising faster than shop prices, and fuel under daily pricing is far dearer than it was in July.
Producers are not short of buyers. According to the All Pakistan Cement Manufacturers Association (APCMA), domestic despatches reached 10.845 million tonnes in July to September, up 7.79% on a year earlier, and 3.788 million tonnes in September alone, up 7.35%. Projections cited by Dawn put listed companies’ combined profit for the quarter at Rs32.4bn, up 16% from Rs27.8bn, on net sales of Rs143bn, up 25%. Rising prices, steady demand and higher profits together explain why buyers are questioning the increases. Sources quoted by Dawn also pointed out that the Competition Appellate Tribunal has still not decided a 2008 case on alleged cartelisation in the sector.
The knock-on effects
First order: building costs rise
Contractors, small builders and families building their own homes pay more per square foot. Developers selling on instalment plans at fixed prices see margins squeezed if they bought cement late.
Second order: public projects and fixed contracts
Government development schemes and infrastructure contracts priced months ago face cost overruns or requests for price escalation. That can slow work or force cuts in scope when budgets are tight.
Third order: pricing scrutiny
A visible gap between cost increases and price increases tends to draw attention from regulators and buyers. Energy is the industry’s main lever on costs: cement makers are among the large users that could benefit if the new competitive power market lowers their electricity bills, which would strengthen the case for price restraint.
Who could benefit
- Listed cement makers: higher prices and steady domestic volumes are lifting projected profits.
- South-based mills: their September despatches rose 30.23%, with exports up 36.26% to 832,173 tonnes, according to APCMA.
- Coal and logistics suppliers: steady volumes keep demand for imported coal and trucking firm.
Who may face pressure
- Home builders and small contractors: they pay retail prices and have little bargaining power.
- Developers on fixed-price contracts: margins narrow if cement costs rise after units are sold.
- North-based exporters: northern mills exported nothing in September, against 221,252 tonnes a year earlier.
What to watch
- Quarterly results: whether listed cement companies’ July to September earnings match the projected 16% rise.
- October despatches: APCMA’s monthly figures, usually released in the first days of the following month.
- Weekly SPI: whether the cement price keeps rising in the Pakistan Bureau of Statistics’ weekly data.
- Diesel and coal: daily diesel prices and the Richards Bay coal benchmark, the two costs most often cited for price rises.
Sources
- Dawn, 50kg cement bag price rises by Rs201 in a year, 11 October 2026
- Business Recorder, Sept cement despatches up 7.35pc YoY, 3 October 2026
- Business Recorder, Weekly SPI inflation rises 0.57pc, 10 October 2026
- The Express Tribune, Govt cuts petrol by Rs2.93, increases diesel by 61 paisas for Oct 13, 12 October 2026
This is analysis, not investment advice. Figures are as of 13 October 2026.
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