Cement manufacturers in Pakistan's Punjab province saw relief through the local court's intervention in a royalty issue as they were awarded a stay order. Reportedly, the Supreme Court granted relief to Punjab-based cement manufacturers by halting the enforcement of the Lahore High Court (LHC) verdict, which had directed them to pay royalties on limestone at a rate of six per cent of the ex-factory price of cement.
A three-judge bench, headed by Justice Naeem Akhtar Afghan, recently heard a case regarding the change in the royalty rate for limestone and argillaceous clay for mineral title holders with mining leases under large-scale mining for cement manufacturing.
The bench directed the Punjab government to file a comprehensive reply within two weeks.
Punjab-based manufacturers, including Bestway Cement Ltd, Maple Leaf Cement Factory Ltd, Fauji Cement Co Ltd, Pioneer Cement Ltd and DG Khan Cement Co Ltd, had contested this change in court.
Khalid Jawed Khan, representing the cement factories, told the media that the Punjab government had unilaterally increased the royalty enormously, which would enhance the cement price in Punjab, adding that if cement sales were halted, it would damage the industry.
by Abdul Rab Siddiqi, Pakistan
