April 29, 2008	Tuesday	Rabi-us-Sani 22, 1429

ISLAMABAD, April 28: Cement prices are likely to increase by Rs15 to Rs20 per bag in sympathy with the increase in petroleum prices, Dawn learnt on Monday.

Sources said that the government has directed the Ministry of Industries and Production and the Competition Commission of Pakistan (CCP) to watch that the members of the All-Pakistan Cement Manufacturers Association (APCMA) do not act as a cartel.

A raid was conducted by a CCP team on the APCMA offices in Lahore on Thursday last to know the truth after learning that APCMA members were meeting to re-fix cement prices as a cartel.

APCMA office-bearers first refused the four-member CCP team access to their record, but after corrupting the computer data let them go ahead with their “surprise inspection.”

The CCP team, however, retrieved the desired data from the hard disk of the APCMA computer, according to sources.

However, sources said that the CCP officials were not taking a strict view of the planned move of the APCMA to raise cement prices, thus further discouraging construction and housing activities in the country.

“They (association) should better watch out as the CPP team has got some real information about the issue,” a source said.

He said that the CCP was making a report and would proceed against the secretary of the association who had been identified to be punishable under the law for disallowing the inspection.

“They will have to come to the CCP for taking a lenient view after it recovered some hard evidence against it over the issue,” he said.

When contacted, CCP chairman Khalid Mirza said that he would strictly proceed in accordance with the law against cement manufacturers.

He said the CCP team was authorised to inspect the offices of the APCMA on the basis of certain information that was made available to the commission.

“We have got some interesting information regarding the collusion activity by the cement manufacturers,” said the CCP chairman.

He clarified that his team did not raid any cement company but a research office of the cement association.

Asked why lenient view was being taken against the association, he said he had to follow rules, but it did not mean that he was showing any signs of weakness.

“When it comes to protecting the interests of consumers, we cannot be careless and have to proceed accordingly,” said Mr Mirza.

Sources said that the unprecedented rise in the prices of cement, steel and other construction material was threatening growth in the housing and construction industries and resulting in unemployment.

Earlier, steel prices had witnessed an increase of 59 per cent during the last seven months.

The price of grade-60 steel that was Rs50,000 per ton in September 2007, has jumped to Rs84,000 per ton.

Similarly, the price of grade 40 steel, which was available at Rs4,125 per ton, has increased to 5,200 per ton.

Industry sources claim that the decisions made by the Engineering Development Board (EDB) asking the Pakistan Steel to index its prices according to “international landed prices” is putting pressure on the prices of steel.

“An impression is being created that the prices of Pakistan Steel are lower as compared to prices in the international market which is not true,” a source said.

He also rejected that high international prices are due to heavy consumption in China and mergers among big steel players.

He said that the government should take notice of increasing steel prices, which have started harming construction and housing activities.