KARACHI: Housing constructions comes to a halt in Pakistan as an association on Wednesday decided to boycott purchasing steel due to high prices.
Altaf Tai, Chairman, Association of Builders and Developers (ABAD) Pakistan in a video massage announced that all members of the association had unanimously decided not to purchase iron with immediate effect.
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A meeting of members was held at ABAD house, which was attended by past chairmen and members, he said, adding that all the members had agreed not to purchase steel.
The members also assured that no construction activities would be undertaken on their sites.
“If any member found undertaking construction activity from Thursday February 9, 2023, then ABAD will not issue guarantee to such member,” he added.
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Altaf Tai said that the situation would be considered in a meeting to be held next Wednesday.
In its previous statement on January 31, 2023, the association lamented that recent iron and steel crisis is dragging construction industry towards total collapse and steel prices has gone all time high to Rs 280000 per metric ton 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.
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.
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“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,” the ABAD chairman said.
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.
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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.
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.
