ISLAMABAD, June 30: Cement manufacturers have assured the government of considerably bringing down prices of cement within next two weeks by cutting its export and improving supplies across Pakistan.

Informed sources told Dawn that a 15-member delegation led by All Pakistan Cement Manufacturers Association Chairman Tariq Sehgal met Industries and Production Minister Jehangir Khan Tarin here on Thursday and promised him to bring down the price of cement from Rs295 to Rs275 per bag within next 15 days.

Both the sides would meet again after two weeks to review the prices of cement and make sure that their prices have gone down significantly. The government, the minister said, was regularly monitoring the prices of cement, especially after the announcement of the budget for 2005-06.

The sources said the cement manufacturers further assured the minister that the price of cement, which had surged to Rs320 per bag few days ago, would eventually be brought down, preferably to Rs271 per bag, very soon.

The minister, the sources said, adopted a tough tone and told the cement manufacturers that if they failed to cut down the prices, the government would not only impose a regulatory duty on it but would also facilitate its import.

Mr Tarin said the government could exercise various options in case the prices were not immediately brought down, as they were not only hurting the people but were also causing further increase in inflation.

The sources said the manufacturers told the minister that daily supplies of cement were being improved and now it would be supplied even on ‘Sundays’ which was previously not allowed. The purpose, they said, was to have a balance in demand and supply that would ensure price stabilization in the market.

The minister was also told that 45,000 to 50,000 tons of cement per day was being supplied by the manufacturers with a view to improving its supplies.

The sources said the minister had asked the manufacturers to inform him about the quantity of cement being exported to Afghanistan.

Mr Tarin was of the view that unless the local demand was met adequately, cement should not be exported to any country. He said the government wanted to help the Afghan government in every possible way, including by supporting more construction activities in Afghanistan.

The sources said Mr Tarin told the cement manufacturers to first cater to the requirements of the local people and then think about exporting the product to any country.

The minister quoted Prime Minister Shaukat Aziz as having said that the people should not be burdened with price increases and that the cement prices must come down.

The sources said that generally the cement manufacturers were alleged to have promoted cartelization in the country by increasing the prices every now and then and that too without any economic justification.