KARACHI: Fayyaz Ilyas, chairman, Association of Builders and Developers of Pakistan (ABAD), has demanded stern action against the cartel of cement manufacturers. He said that cement and steel are basic raw material for the construction industry
In a statement issued on Tuesday, he said that continuous increase in prices of cement and steel bars will badly damage the construction industry and the government will not be able to achieve the target of Naya Pakistan Housing Scheme.
ABAD chairman said that cement and steel manufactures started increasing prices of cement and steel bars when construction activities came to take off mode with the announcement of a Special Package for the construction industry by the Prime Minister.
He said that continuous increase of cement and steel bars prices by cement and steel manufacturers is a conspiracy against Naya Pakistan Housing Scheme and national economy.
He urged Prime Minister Imran Khan to take action against cement and steel manufacturers just like the government had taken action against sugar mills owners and appoint a commission.
He said that due to ever increasing prices of cement and steel, builders are facing difficulties to complete their projects and on the other hand common people are unable to build their dream homes.
Fayyaz Ilyas said that the construction industry, after agriculture, is the largest job provider and if the conspiracy against this industry is not stopped, thousands of skilled and unskilled workers will lose their livelihood and the national economy will have irreparable loss.
He said that it is high time to reactivate Competition Commission of Pakistan to take action against cement and steel manufacturers’ cartels.
He recalled that steel bar price per ton was Rs110,000 in November 2020 and at present this price is Rs178,500, which shows an increase of more than Rs68,000 per ton during the last 10 months.
On the other hand cement prices are also raised to Rs680 per 50-kg bag. About 60 percent of total cost of a high rise building consists of cement and steel while this ratio is 30 to 40 per cent in a normal residential project.
He said that in this situation the federal government will not be able to fulfill its promise of constructing 5 million low cost houses.
