The Kyrgyz Ministry of Economy and Commerce has published a justification for its decision to include cement on the list of socially significant goods. The designation allows the government to regulate prices for essential items, according to local press reports.
The ministry said that the absence of state oversight has resulted in unjustified increases of cement prices, sending housing prices up and slowing the construction of social and infrastructure projects.
“This situation limits the population’s access to quality, affordable housing and slows the country’s socio-economic development,” the ministry stated.
Officials at the ministry do not expect any significant negative consequences but did note that there would be a reduction in cement company profits.
The ministry further warned that the lack of effective pricing mechanisms poses risks of shortages or sudden price spikes during periods of heightened demand. In contrast, stable cement prices would boost confidence among construction firms, enabling better planning and project implementation.
