ISLAMABAD, Jan 10: The government is expected to provide further incentives and facilities to enhance export of cement to increase capacity utilization of the cement industry that has gone up by more than 50 per cent since January last year.

The government will, however, consider measures to check escalation of prices in the domestic market, like last year before it allowed more incentives for cement export.

The industry had last year increased prices beyond Rs400 per bag through a cartel-like situation.

As a result, the government had allowed limited quantities of cement imports and banned exports to improve supply side situation. Subsequently, the ban on export was lifted as the completion of new cement plants reduced prices down to Rs300 and below.

The request for more fiscal and infrastructure incentives was made by the All-Pakistan Cement Manufacturers Association (APCMA) at a meeting, presided over the secretary of industries and production, Shahab Khawaja, here on Wednesday.

The meeting was informed that the capacity of cement plants increased to 33 million tonnes at the end of year 2006 as compared to 21 million tonnes in January 2006, showing an increase of about 57 per cent. On the other hand, the country’s domestic demand is around 22 million tonnes.

As such, there was a surplus capacity and a huge potential of cement export. They requested further incentives and export facilities, including infrastructure facilities at ports so that they may be in a position to compete the export market in Africa, Sri Lanka and Gulf countries.

Mr Shahab Khawaja assured the cement manufacturers that the government will consider their request sympathetically and provide all possible facilities for export of cement. However, he stated that prices of cement should not be increased as the government had to protect the interests of the common man as well.