The Association of Builders and Developers of Pakistan (ABAD) has announced that its boycott of steel purchases has resulted in a significant reduction in steel prices in the country. Steel manufacturers have reportedly reduced their prices from Rs 345,000 per ton to Rs271,000 per ton, following ABAD’s boycott.
Speaking at a press conference at ABAD House on Wednesday, Patron-In-Chief Mohsin Sheikhani, Chairman ABAD Altaf Tai, Senior Vice Chairman Khawar Munir, Vice Chairman Nadeem Jeewa, and Chairman Southern Region Raheel Rinch, along with a large number of members, discussed the positive impact of the boycott on the construction industry and the economy of Pakistan.
According to the ABAD representatives, local steel manufacturers had formed a cartel to get maximum profit by increasing prices, despite the low prices of raw materials in the international market. The boycott by ABAD, which lasted for 20 days, forced steel manufacturers to bow before their demands and reduced prices of steel by Rs74,000 per ton.
The ABAD representatives stressed that prices of steel in the international market are only Rs250,000 per ton, and the manufacturing cost is Rs 230,000. Therefore, prices of steel in Pakistan should not be more than Rs250,000 per ton.
ABAD has purchased 2500 tons of steel at the reduced rate of Rs271,000 per ton, which will be provided to its members to continue construction of their projects. The representatives also highlighted that the construction industry employs 25 million people in Pakistan, and the rising cost of construction materials has forced construction to stop on 350 projects.
To save the livelihoods of these 25 million people and strengthen the national economy, ABAD has demanded that the government reduce Regulatory Duty (RD) and Additional Regulatory Duty (ARD) on steel and taxes on other materials. If the government fails to take positive steps to support the construction industry, builders will be forced to move their investments to other countries.
The ABAD representatives emphasized the need for the government to take immediate action to reduce the burden on the construction industry, which plays a crucial role in the economy of Pakistan. They urged the government to abolish RD and ARD on steel and take steps to reduce taxes on other construction materials to support the construction industry and the economy of Pakistan.
To read the full article visit www.brecorder.com
