Increasing Prices Of Inputs To Discourage Construction Activities

On contrary to the claims of the government regarding the promotion of construction and housing in the country there seems to be a severe blow to the construction activities in the wake of Increasing Prices Of Construction Materials In Pakistan. Despite there being a rosy picture recently presented by the State Bank of Pakistan (SBP) thereby showing an 85% increase in construction and housing finance the situation on the ground is quite different. The growing reduction in cement dispatches, as well as declining imports of iron and steel scraps between July to December, imply a significant decrease in construction activities in the country.

AS per details, the dispatches of cement declined to 4.057ml in December 2021 compared to 4.124 million tons in November 2021. Similarly, the import of iron and steel scrap which is used to manufacture steel bars has declined significantly from July to December last year. The demand for steel bars has declined 20% in the second half of 2021 as compared to its first half. The ongoing scenario shows the decline in construction activities. The Construction Association of Pakistan (CAP) had warned the government in November of the possible collapse of the construction sector owing to the soaring prices of construction materials. The ever-increasing prices of materials have made the construction beyond the reach of the common man. The former chairman CAP, Syed Ashfaq Hussain said that even the construction of the government projects has also halted over the past couple of months as the Contractors Are Boycotting The Tenders Issued By The Government.

Mr. Hussain said, “The government claims to have supported the contractors but it is a 100 percent wrong impression,” He added that CAP has met with concerned authorities several times but the “situation is the same as nothing concrete has arrived from the government. He said that there has not been any incentive on the part of the government for the constructors as the price of cement soared to Rs 750 per bag from Rs 480 and steel bar jumped to Rs 195,000 per ton from Rs 105,000 per ton. Chairman ABAD Mohsin Shaikhani said that in the wake of the demolition of NASLA tower no one is ready to invest in the flats and the value of the NOC has also been damaged seriously. said that only in Karachi the construction activities on the ongoing 250-300 high rise projects have reduced 50 % after the NASLA Tower issue. He said, “ No objection certificate (NOC) has lost its value after the Nasla Tower case. Apartment buyers are in a quandary over the developments in the aftermath of its demolition,”