News
Cement Prices in Pakistan Jump Rs201 Per Bag, Raising Housing Construction Costs
By Mariam Khan
Real Estate Analyst
3 min read
According to the Pakistan Bureau of Statistics (PBS), the average price of a 50kg cement bag rose from Rs1,395 in October 2025 to Rs1,596 in October 2026, an increase of Rs201. The reported year-on-year rise is 14.38 percent. Higher international coal and diesel prices have contributed to production costs. Domestic cement dispatches rose 8 percent year on year in the first quarter of FY2026–27. Industry sources also raised concerns that cement price increases have exceeded the rise in some underlying production costs.
Why the Percentage Needs a Note
Rs201 on a base of Rs1,395 works out to about 14.4 percent on the rounded prices (our own calculation), which is in line with the reported 14.38 percent. The small difference comes from rounding in the quoted prices. The figures are average prices, so what a buyer pays in a given city or from a given dealer may be higher or lower.
Why Coal and Diesel Are Cited
The reports link the rise partly to higher international coal prices and higher diesel prices. Coal and fuel are significant inputs in cement making, and diesel also affects transport. The reports do not say how much of the Rs201 comes from each cost, so we cannot split the increase. Fuel costs are covered in our reports on the October 10 petrol and diesel prices and the rise in global oil prices above $104.
Why the Industry Concern Is Not a Finding
The reports say industry sources raised concerns that cement prices have risen by more than some underlying production costs. The sources are not named in the material we have, and the reports do not give cost data to test the claim. We therefore treat it as a view reported from industry, not as an established fact, and we do not say whether the price rise is justified.
Why Rising Dispatches Matter
Domestic dispatches rose 8 percent in the first quarter of FY2026–27. That suggests construction demand held up in the period, but the reports do not say what drove it, or how it compares with exports. Higher demand and higher prices together can add to pressure on builders, though the reports do not make that link.
Why Cement Is Only Part of the Cost Picture
Cement is one input. Steel, labour, fuel and electricity also matter, and wholesale prices are under pressure more generally, as in Pakistan's wholesale inflation reaching 13.3% and the World Bank's warning on energy and freight costs. We do not know what share of a typical house's cost is cement, so we do not put a figure on the impact.
What This Means for Builders, Developers and Buyers
Individuals building homes should expect higher budgets and may want to buy in stages, compare dealer prices and keep a contingency. Developers may see pressure on margins if they have fixed-price contracts or have already sold units. Buyers of off-plan property could see developers cite higher costs. The signals to watch are the next PBS price release, cement dispatch data and fuel and coal prices. Price data is published by the Pakistan Bureau of Statistics.