Pakistan’s new federal budget, set to be announced in the next few weeks, looks set to provide a fillip for the country’s cement producers by boosting demand. Through the federal and provincial Public Sector Development Programmes (PSDPs) the government has allocated PKR1675bn (US$16bn) for infrastructure projects, including roads and dams.
However, the budget might also change the way in which Federal Excise Duty is applied to cement. Currently the tax is levied at five per cent of retail prices, but the government has proposed replacing this with a fixed rate.
