The supply of cement across Pakistan has come to a standstill indefinitely, as the All Pakistan Cement Manufacturers and All Pakistan Cement Distributors have launched a nationwide strike in unison. This move mirrors recent strikes by petroleum dealers and flour mills, marking a period of heightened commercial unrest in the country.
The decision to halt cement distribution stems from grievances primarily centered around the implementation of a withholding tax and the introduction of a point-of-sale (POS) system. According to the All Pakistan Cement Dealers Association, the withholding tax, imposed by placing the cement sector in the third schedule of the recent federal budget, has triggered a significant financial upheaval within the industry.
Chairman Sajid Ali emphasized that this tax measure has caused cement prices to skyrocket, with costs per sack jumping from Rs500 to Rs1,500. He underscored that unlike Fast-Moving Consumer Goods (FMCG), cement’s inclusion under this tax regime is unjustified and has led manufacturers to double their prices.
“We have been forced to suspend cement supply nationwide due to the adverse impacts of the withholding tax and the POS system,” stated Sajid Ali, outlining the association’s stance. He reiterated that their strike will persist until their demands, primarily the revision of the tax policy affecting the industry, are met by the authorities.
The strike has significant implications for the construction and infrastructure sectors, as cement is a critical component in these industries. With no immediate resolution in sight, the standoff underscores the challenges facing Pakistan’s economic stability amidst ongoing fiscal policy disputes.
As stakeholders await developments, the broader implications of the cement supply halt remain uncertain, pending potential negotiations between the industry representatives and governmental bodies.
