Mohammad Ali Tabba
Cement despatches are rising, both for domestic consumption and exports, since the resumption of business activities following the decline in the coronavirus infections in June. The sales rose by almost a fifth to 19.3 million tonnes during the first four months of the present financial year to October from a year ago, according to the cement manufacturers’ association data. Domestic consumption grew by 17.9 per cent to 15.7m tonnes as overseas shipments surged by 29.1pc to 3.6m tonnes.
The industry, which had suffered a cumulative loss of Rs13bn including the Covid-19 related loss of Rs4.7bn in the last fiscal year owing to the addition of 1.5m tonnes in new capacity and shrinking demand, has seen its profitability return this year as the retention prices increase, excise duty is cut by Rs25 per bag to Rs75 and sales spike. Besides, the reduction in interest rates has significantly lowered the manufacturers’ financial costs that had been a major drag on
CCP finds evidence of cartelisation in Pakistan 16 December 2020
The Competition Commission of Pakistan (CCP) has finalised an inquiry report that shows evidence of cartelisation by the cement sector, reports Dawn.
The inquiry report was finalised for All Pakistan Cement Manufacturers Association (APCMA) members in the northern region of the country, as the Sindh High Court had restrained the CCP from using material collected from cement companies in the south zone (Sindh).
Cement prices increased by up to INR50/bag in May, June and August 2020, according to a CCP official. The CCP began investigating after cement prices rose while global prices of coal and oil were declining.
Cement Cartel Sabotaged Government Efforts to Boost Construction Sector: CCP propakistani.pk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from propakistani.pk Daily Mail and Mail on Sunday newspapers.
Pakistan regulator finds ‘hardcore’ evidence of cartelisation by cement manufacturers
Says they colluded in production, market division and price fixation SAMAA | Bilal Hussain - Posted: Dec 16, 2020 | Last Updated: 4 months ago SAMAA | Bilal Hussain Posted: Dec 16, 2020 | Last Updated: 4 months ago
Photo: AFP FILE
The Competition Commission of Pakistan has found “hardcore” evidence against cement companies of colluding in the North region. Company officials exchanged information through WhatsApp, text messages and emails about fixation of cement price and its underlying cost factors, quota and allocation, it says.
The CCP concluded on Wednesday its enquiry relating to the
violation of the Section 4 (Prohibited Agreements) of the Competition Act, 2010
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December 16, 2020
ISLAMABAD: The Competition Commission of Pakistan (CCP) has found “hardcore evidence” against the All Pakistan Cement Manufacturers Association (APCMA) and its Northern Region units involved in cartelization for pocketing an additional Rs40 billion from consumers.
With FIA and PTA’s help, the CCP authenticated its proof through forensic audit that some top officials had established a WhatsApp group with the name of “APCMA Marketing Officials” on November 15 to communicate and decide on fixation of prices in the Northern Region. “The CCP through a detailed inquiry found that the APCMA increased the prices thrice first in May, second in June and third in August 2020 and pocketed Rs 40 billion additional unjustified profits when the global coal prices dropped, oil prices reduced significantly in international and domestic markets and interest rates decreased by 525 basis points from 13.25 per cent to 8 per cent in Pakistan. If this cartelizati