The rise in cement prices reported on Tuesday goes against the assurance given last month by the All-Pakistan Cement Manufacturers' Association that prices would remain stable in the near future.
The APCMA assurance had come in reply to growing public criticism over the rise in prices despite the concessions given to the industry by the government. APCMA had said that it would ensure price stability but not a cut in prices, as this would be possible only if production rose.
What we have seen, however, is that despite an increase in cement production, prices have not come down. In the last budget, the government had made a 25 per cent reduction in Central Excise Duty on cement.
In spite of this concession, there was a rise in prices. In the second half of 2003, cement prices increased by over 35 per cent, as a bag selling for Rs160 before the budget sold for Rs220. Today, it costs Rs240.
Cement is an important input for the housing and construction industry, and an increase in its cost has wider impact. In the absence of a rise in other inputs, one wonders why cement prices alone should shoot up.
One explanation given in the market is that it is a cartel of cement producers that is hiking prices to maximize profits. A threat by the finance minister to allow the import of cement is no long-term solution, as imported cement, after payment of duties, will be only marginally cheaper.
The government needs to show its teeth to the cement producers, whose appetite for profit seems to be growing. A precedence has to be set whereby the finance minister establishes that he means business; otherwise the rise in cement prices may encourage producers in other sectors to follow suit which would be a disaster for the construction industry.
Sale of kidneys
The case registered by the Gujranwala police against six people allegedly involved in the kidney trade has highlighted an issue that few lawmakers take note of, let alone discuss.
In this particular instance, the suspects had kidnapped a man and taken him to Lahore where one of his kidneys was removed and sold for a substantial sum. The suspects stand accused of luring other victims to Lahore with the promise of providing them with jobs and then having them operated on and selling their kidneys to certain hospitals in the city.
However, it has been observed that the removal of kidneys and their sale are, for the most part, a voluntary procedure involving little coercion. At the root of this growing trade is grinding poverty, backward social traditions and the awareness that it is possible for a donor to survive on one kidney.
This trend has been especially strong among landless peasants, who are victims of poverty. Post-operative care for most of these donors is poor, and it is difficult for many to resume their work with the same vigour as before.
Unfortunately, the sale of kidneys is fast growing into a lucrative commercial venture for several parties. Besides the donor, there are also middlemen and the unscrupulous in the medical community who are involved.
Unless the government acts with determination, the sale of kidneys could assume the alarming proportions it has in neighbouring India, where documents are often forged to conform to a law that prohibits the sale of kidneys while stipulating that donors must have close family or similar ties of attachment to the recipient.
While the issue is linked to poverty, for which there are no quick solutions, lawmakers would do well to study the possibility of coming up with legal safeguards against this kind of sale and lay down a procedure for kidney donations to ensure against charity turning into trade.