Cement Prices Show Mixed Trend Across Regions

The Pakistan Bureau of Statistics (PBS) has indicated a fluctuating pattern of cement prices nationwide with slight decreases in the northern regions of the country and stable prices in the southern markets throughout the week ending on October 2, 2025.

The PBS data shows that in the northern cities the average price of a 50 kg bag of cement in retail was Rs1,381, which is a slight 0.10% point drop over the past week, which was Rs1,382. Conversely, the average price in the southern cities stood at a balanced point of Rs1,449 per bag which shows that prices have been stabilized mostly across the board.

Although this is only a week-to-week difference, it is in the regional differences that one sees a larger trend of price accommodation and flexibility in the Pakistani cement market, which is still finding a way of accommodating the increasing cost of inputs, flood shocks and shifting construction industry demand.

Cement Price Breakdown in Pakistan

Cement is another commodity that is highly monitored in Pakistan because of its infrastructural and construction importance. According to the most recent report of PBS, there are slight differences in cities, which are dependent on local supply and logistics considerations.

Northern Region

Prices in this area were smaller and there were minor differences between cities:

The lowest rate was experienced at Bannu at Rs1,280 per bag with Bahawalpur experiencing the highest rate in the north at Rs1,450.

The minor week-on-week decline across the northern area indicates slight adaptations associated with better transportation following the previous floodial disturbance and a temporary downturn in construction demand due to the termination of the monsoon season.

Southern Region

In this area, the prices did not fluctuate and most cities were around the Rs1,450 average.

Its southern part that comprises some of the largest markets such as Karachi, Hyderabad, and Quetta still records higher average prices than the north. Quetta topped the list at Rs1,510 per bag, as more freight and fuel expenses are incurred because it is not closely connected to cement-producing centers within Punjab and Khyber Pakhtunkhwa.

Stability in the Market Despite the Cost Pressure

The PBS data indicate that the cement cost has not gone up significantly in the country in spite of the occurrence of natural disasters and increased energy tariffs. This stability demonstrates the market discipline, as well as enhanced logistical resilience throughout the industry.

The supply issues in August and September due to floods led to localized shortages in parts of the northern markets, and producers soon sorted this out by rerouting deliveries and, with the help of regional warehouses, stabilized supply.

This stability is more relevant considering the importance of cement as a driver of cost in construction. Any sharp rise has a direct effect on the budget of housing, road and infrastructure projects, and therefore, the current stability is a reprieve to both the private developers and the government projects.

Brand Comparison and Market Dynamics

In addition to regional averages, brand competition has continued to influence the price landscape. The large manufacturers of cement are Bestway Cement and Maple Leaf Cement who have stable retail prices with slight variations in perceived quality and distribution power. In September 2025:

• Bestway Cement was quoted at approximately 1,410, Rs.
• Maple Leaf Cement was marginally higher at Rs1,430, which positions it as a luxury brand in the market.

These minor changes display that although cement prices are highly sensitive to the cost of production, brand recognition and consumer trust continue to play a role in the retail choice and this is particularly applicable to contractors and large-volume purchasers in big city work.

High-end housing and infrastructure construction enjoy loyalty to the premium brands because of quality assurance and consistency. However, smaller local manufacturers tend to have a little lower price to appeal to buyers that are cost-sensitive, particularly in the rural market.

Flood Impact and Recovery

Monsoon floods that occurred in the year 2025 also affected the transportation systems of different provinces especially in the south Punjab and upper Sindh. Many roads and bridges were destroyed and supplies of building materials, including cement were held weeks late. The initial impact of the shocks was local shortages and slight pressure on prices, but the producers managed to stabilise supplies in mid-September.

At the same time, the multinational cement producers like Lucky Cement, DG Khan Cement and Fauji Cement stepped up to produce enough products to satisfy the demand after the routes had been opened. This fast recovery indicated that the prices were not running away and it is one of the indicators of the stability of the sector and better logistical planning.

Why Prices Differ Across Regions?

A combination of geographical, economic, and logistical factors determines regional differences in cement prices:

1. Closeness to Production Plants

Most of the cement plants in Pakistan are found in the north-west specifically in Punjab and Khyber Pakhtunkhwa. This makes northern prices comparatively low because of the shorter distance of transportation.

2. Transportation and Fuel Cost

The transportation of cement is more dependent on trucks that operate on diesel. At high petroleum prices in 2025, the cost of landing is greater in the areas more remote to the manufacturing sites (such as Balochistan and upper Sindh).

3. Local Taxes and Competition in the Market

The provincial taxes, dealer commissions and retailer margins vary across the regions. The very competitive nature of the Karachi market is what makes prices remain moderate in the Karachi market compared to Quetta or Sukkur.

4. Seasonal Trends

The post-monsoon months are typically characterized by an increase in construction work and this may result in small price increments in the coming weeks.

Government Oversight and Regulatory Role

The Federal Board of Revenue (FBR) presented major changes to make the cement pricing and taxation more transparent. The FBR has adopted under the new policy that the average national retail prices which are reported biannually by the PBS are used to determine the Minimum Retail Price (MRP) to pay tax. This mechanism also makes sure that the levies of cement sales tax are imposed despite the real market prices, which minimizes the possibility of under-invoicing, which has been a problem in the industry.