As the prices of cement and steel rise in Pakistan, the stakeholders of the construction sectors are getting worried.
Association of Builders and Developers of Pakistan (ABAD) Chairman Fayyaz Ilyas on Tuesday mentioned that in the past 10 months there has been an increase of Rs68,000 per tonne in cement prices. The price of steel in November was Rs110,000 per tonne while currently, it is Rs178,500 per tonne. On the other hand, the price of cement has moved up to Rs680 per 50kg bag.
He believed that the rising prices would threaten the Naya Pakistan Housing Scheme (NPHS) and said, “Sixty per cent of the total cost of a high-rise building consists of cement and steel while this ratio is 30pc to 40pc in a normal residential project. In this situation, the federal government will not be able to fulfil its promise of constructing five million low-cost houses”
Ilyas has requested the government to look into the matter and take immediate action against it. He believes that this is a conspiracy against the government initiative of the housing plan.
Analysts are of the view that the price hike is due to the rising price of scrap and coal internationally. Moreover, they believe that cement demand in the northern areas has to lead to an increase in prices.
However, Cedar Capital analyst Waqas Mustafa mentioned that the price of steel increased in Pakistan when the price of scrap was declining internationally.