ABAD of Pakistan send SOS to save the construction industry

ABAD of Pakistan send SOS to save the construction industry
14 March 2023

The Association of Builders and Developers of Pakistan (ABAD) expressed its concern about the high and burgeoning prices of steel bars in the country and the ultimate effect on the construction industry. In an appeal, the ABAD drew the government’s attention and urged it to take immediate decisions to contain the soaring prices of steel bars. Prices of steel bars have risen from PKR195,000/t (US$694/t) to PKR310,000/t (US$1103/t)in the last 30 days. 

ABAD’s demands include steel bars in the list of essential items and approval opening of a Letter of credit for importing 100,000t of steel bars used in the construction industry. It said in countries where per capita income is US$20000, the price of steel bars is US$675/t, whereas in Pakistan, per capita income is US$1350/t, and the price of steel bars is US$1170/t. It alleged that thanks to cartelisation and hoarding by a few manufacturers of steel bars in Pakistan.

Furthermore, 50 per cent of the under-construction projects in Pakistan have stopped construction activities. In contrast, the balance 50 per cent will stop construction in the next 30 days, rendering 25 million people jobless in the Holy Month of Ramzan. All upcoming projects usually launched on Eid are on hold. 

Other demands stated, it will take at least six to nine months to revive the stalled projects, due to which investment by overseas Pakistanis and locals will be at stake. Annual remittances of almost US$15bn will suffer due to the present unpredictable condition of Pakistan’s construction and real estate industry. Removal of the Regulatory Duty and Additional Customs Duty on the import of steel bars used for construction purposes was requested.

In addition, due to the closure of the construction industry future of 72 Allied industries, including cement, will be jeopardised, ABAD claimed. ABAD also requested Pakistan Prime Minister of Pakistan, Muhammad Shahbaz Sharif, Finance Minister Muhammad Ishaq Dar and Federal Minister for Industries & Production, Makhdoom Syed Murtaza Mahmood, to look into their grievance and take appropriate steep to save the construction industry.

Published under Cement News