ISLAMABAD, Feb 10: The government and the All-Pakistan Cement Manufacturers Association (APCMA) on Saturday reached an agreement to bring down cement price to Rs260 per bag from Rs300.

The announcement was made after a meeting of the APCMA chairman, Aizaz M. Shaikh, with the minister for industries, production and special initiatives, Jahangir Khan Tareen, to review the unprecedented increase in cement prices in two weeks.

The fixation of cement price at official level would give more leverage to manufactures to increase their profits.

The manufactures will not allow prices to fall below the agreed level, indicating failure of the government to break cartelisation of cement manufacturers.

The cement price was around Rs200 per bag two weeks back, which suddenly jumped to around Rs300 per bag. Talking to reporters after the meeting, the minister said the government was concerned over sharp increase in the price of cement during the last two weeks, and the prime minister had directed him to immediately convene a meeting of the APCMA to discuss the issue and reduce the price.

He said the association had assured the government that on Monday they would advertise in the national press, asking for a reduction in the price of cement with immediate effect and according to the agreed price of Rs260 per bag.

He warned that strict action would be taken against those found involved in overcharging. He said in the next two months, two more cement factories would start commercial production.

He expressed the hope that this would help increase production of cement and stabilise the price.

Answering a question, he said export of cement was in the national interest and it would continue.

He asked the APCMA to run their factories in full capacity to enhance production.

The APCMA chairman said there was no cartelisation of cement manufacturers, adding they would ensure sale of cement on the agreed price of Rs260 per bag.