Pakistan exporters hike Afghanistan prices by 25%

Pakistani exporters have raised prices to Afghanistan by 25 per cent to US$50/t up from US$37-40/t, the Express Tribune reports.

Senior analyst at KASB Securities, Shagufta Irshad, said the move will have a positive impact on the earnings of these companies in the current financial year.

With DG Khan and Lucky Cement both situated in the northern part of Pakistan and are major exporters to Afghanistan. Sales to this neighbouring market constitute about 30 per cent of DG Khan’s total export volumes while for Lucky Cement this figure is around 20-25 per cent. Shagufta forecasts that the rise in prices will increase DG Khan’s and Lucky Cement’s earnings for the current fiscal year by 16 and three per cent, respectively.

During the first five months of the current fiscal, exports to Pakistan were up by 13 per cent.  Despite Afghanistan witnessed a decline in November 2011 on a month-on-month and year-on-year basis, the cement manufacturers are still hopeful that construction work in Afghanistan and other areas will a help bring up dispatches during the remaining months of the year.