A new study by the Competition Commission of Pakistan (CCP) has proposed sweeping tax and structural reforms to improve efficiency and competitiveness in the country’s cement sector. The report highlights that reducing distortions and improving policy frameworks could unlock long-term growth in one of Pakistan’s key industries.

The study, titled Competition Assessment of the Cement Sector, identifies multiple challenges affecting the industry, including high taxation, energy costs, and logistical inefficiencies. It recommends reforms in taxation, mineral policies, and infrastructure to encourage fair competition and enhance productivity.

Experts note that the cement sector plays a vital role in the economy, with large-scale manufacturing contributing significantly to overall industrial output and GDP. However, heavy taxes and structural issues have limited its potential and raised production costs.

The report suggests that rationalising taxes and improving supply chains could lower prices, boost demand, and support construction and development activities. Analysts believe such reforms would not only benefit manufacturers but also have a positive spillover effect on related sectors like housing and infrastructure.

The recommendations come at a time when policymakers are under pressure to balance revenue generation with industrial growth, making targeted reforms increasingly critical for economic stability.