Source revealed that vulnerable masses will have to bear additional burden as whole industry base including agriculture, textile, steel, cement, sugar, marble, electronic, engineering etc had been hit severely by NHA decision. The All-Pakistan Goods Transports Owners Association has intimated cement factories their limitations of providing raw material to cement manufacturers due to unfair treatment at the hands of NHA.
They said the Motorway Police had imposed an impractical restriction on truck owners. Sources said this decision would alone push price of per bag of cement to Rs 10 to Rs 30 across the country. Sources from the cement industry told Business Recorder here on Monday that the impact could easily be gauged through case of the cement sector which was caught in double jeopardy as loaded truck carrying raw material to factories and finished goods/ cement back to market paying double, the freight to carry less than previously allowed weight due to implementation of the decision will increase manifold.
The cement industry alone uses the road transport for local dispatches and export through seaports and to neighbouring countries as well, the total dispatch last month was around 2.6 million tonnes. As for the raw material the approximately 14,000-15,000 tons of coal is transported daily from Port Qasim to different factories in the country, including Punjab and KP, while the dispatches from these factories will cost dearly pushing the profit margins of the cement sector to shrink. If the strike prolongs, it will definitely impact the cement dispatches and the input cost as the raw material is imported through ports and subsequently transported via road network.
The increase in freight would impact on cement prices as well, if not passed by the manufacturers the profit margins would shrink impacting the share value which would subsequently decrease, sources added. The goods transporters are on strike for the past week, which has deteriorated the situation.
The cement industry is facing shortage of raw material/ coal as truck owners have stopped picking up coal consignments for factories from Port Qasim. The supplies of coal and various raw materials essential for cement production has become irregular which may hurt production and affect supplies to retail market in the coming days. Moreover, the consequences will never end here as sugar mills, flour mills, confectionery are facing shortage of material while on the stock piled up in factories rusting due to low load condition by NHA and this situation is creating a ripple effect and shortage in the market.
Sources said one decision of NHA could lead to imbalance demand and supply, distortion in macroeconomic indicators, loss of the revenue of the government, loss of employment opportunities, lower export, under utilisation of resources and lowest production activities at industries. Sources urged the government to intervene and allow the transporters to carry goods as per earlier practice and sudden changes in whole procedure would not be in the benefit of the nation.