Hiked royalty rate in Khyber Pakhtunkhuwa to increase cement prices

The Khyber Pakhtunkhwa government’s decision to increase royalty will boost the cement prices, as the province is home to several top producers.

For the next fiscal year 2025-26, the provincial government has fixed the royalty rate at 10 per cent. This move will automatically raise the cement prices for consumers, thus adversely affecting the construction sector by further increasing the cost.

Currently, the Minerals and Mines Department is collecting Rs350 per tonne as royalty, which will reach Rs385 with effect from July 1.

But it is a “five-year plan”, not limited to 2025-26. That’s why the cement royalty will witness another 10 per cent hike in 2026-27.

Meanwhile, Khyber Pakhtunkhwa is going to increase royalty on cement by 7.5 per cent in the next three fiscal years – 2027-28, 2028-29 and 2029-30.