KARACHI: Association of Builders and Developers (ABAD) of Pakistan has urged the authorities to allow import of raw material on barter trade to save domestic construction industry.
In a statement on Tuesday, ABAD chairman Altaf Tai Chairman said that recent iron and steel crisis is dragging construction industry towards total collapse and steel prices has gone all time high to Rs 280000 PMT (two lacs eighty thousands) because the government is not allowing to open Letter of Credits (LCs) and moreover no steel is available in this rate, too.
READ MORE: FPCCI suggests three key points for tax reforms
He said that builders and developers have closed their projects costing billions of rupees and hundreds and thousands people have lost their jobs due to ever high prices of construction materials.
The government should allow import of construction materials from neighboring countries on the basis of barter to defuse current situation otherwise builders and developers will be forced to move their investments to other countries and that move will be detrimental to Pakistan’s economy, he lamented.
READ MORE: KATI rejects petroleum price hike, urges politicians to reduce expenses
Altaf Tai said that if the government will not allow opening LCs, shortage of other essentials items will also create which can lead to chaos and law and order situation in the country.
He said that the construction industry is given special attention all over the world to balance the economy because more than 70 allied industries are running when construction industry is running but unfortunately no such attention is given in Pakistan.
READ MORE: Raising interest rate will not help in curtailing inflation: FPCCI
Chairman ABAD was of the view that the government is not opening LCs for import of raw materials because of foreign currency’s shortage but it is feared that this decision will be more harmful than favorable. He said that not only local builders and developers but foreign investors are also not investing their money in Pakistan due to crisis of construction materials.
READ MORE: KCCI urges shipping lines, terminal operators to waive detention, demurrage charges