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Cement: Proposal to increase Royalty charges in KPK - By Taurus Research

  • By: Taurus Securities Limited

  • - Published: Tuesday, 25 March 2025
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<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Minerals Development Department of Khyber Pakhtunkhwa (KPK) in its latest meeting has proposed to increase royalty charges in KPK province by shifting the weight-based royalty charge per ton to 6% on the ex-factory price (similar mechanism as applied in Punjab w.e.f. July 01, 2024)</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">As per our analysis, KPK cement manufacturers are currently paying royalty of PKR 12.5 per 50 kg bag, translating into PKR 250 per ton of cement production. However, the new royalty charge will reflect a massive jump in the cost of manufacturing for the KPK players i.e. PKR 80 per bag (up 5.4x over the current royalty charge per bag) or PKR 1,595 per ton.</span></li></ul><...

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