ISLAMABAD, Feb 20: The government asked the cement producers on Tuesday to scale down per bag price within a week, otherwise stern action would be taken against them, including levy of ban on export of cement to Afghanistan and the Middle East.

"If the producers did not bring down prices in the next few days to a reasonable level, the government in the next Economic Coordination Committee meeting may withdraw customs rebate on cement export, besides allowing freight subsidy on imports," said Federal Minister for Industries and Production Jahngir Khan Tareen.

The minister stated this while chairing a meeting, attended

by the representatives of All-Pakistan Cement Manufacturers Association (APCMA), the

Association of Builders and Developers and the All Pakistan Contractors Association

(APCA).

The meeting took strong notice of unjustified hike in cement prices in the local market just in a period of three weeks though there was no increase in taxes or power rates.

Briefing newsmen after the meeting, the minister said that the producers had been given one week time to reduce cement prices, as according to the minister, there was no justification for this unexpected increase in the per bag price.

The industry ministry has already set up a special unit to closely monitor daily cement prices in the domestic market and report to the higher authorities. To a question, Mr Tareen said the government did not fix cement price at Rs260 per 50-kg bag in the last meeting, but as a first step had announced Rs260 per bag as an upper ceiling to control the rising trend.

The minister also asked the manufacturers to increase the supply in the local market with full installed capacity to meet the domestic demand filling the gap.

The cement manufacturers could not justify the increase in the rise of the cement prices and they were requesting to keep the prices at the current level.

The prime minister in a recent cabinet meeting had described the recent upsurge in cement prices as manipulative rather than market-driven.

There is an indication from the government to producers that the price of cement should be brought down to around Rs220 per bag.

Besides the minister, the meeting was also attended by the secretary of industries, joint secretary of commerce and the member sales tax, CBR.