KARACHI: Association of Builders and Developers of Pakistan (ABAD)’s boycott of steel purchase has brought positive result as steel manufacturers have brought down prices of steel to Rs271,000 from Rs345,000 per ton.
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Steel producers reject allegations of ABAD
ISLAMABAD: Pakistan Association of Large Steel Producers (PALSP) has rejected allegations leveled by builders and developers regarding price hike of steel bars.
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Construction industry continues boycott steel purchase
KARACHI: Construction industry has continued boycott the purchase of steel bars in protest of high prices.
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Housing construction comes to halt in Pakistan on high steel prices
KARACHI: Housing constructions comes to a halt in Pakistan as an association on Wednesday decided to boycott purchasing steel due to high prices.
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ABAD urges barter trade to save construction industry
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.
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ABAD denounces IMF demand to stop incentives
KARACHI: Mohsin Sheikhani, Chairman Association of Builders and Developers of Pakistan (ABAD) has strongly denounced the demand of the International Monetary Fund (IMF) for ‘Unwinding’ the two key measures for the promotion of housing and construction activities and said that the suggestion of IMF will further weaken the economy of Pakistan.
In a statement on Tuesday, ABAD chairman said that according to a World Bank’s estimation for Pakistan, the real estate sector makes up 70 percent of the national wealth and this industry contributes significantly to the GDP.
READ MORE: ABAD demands abolishing regulatory duty on steel bars
The World Bank’s report itself speaks of the reality that how our national economy is dependent on real estate and construction industry, he said adding that finance has remained a serious issue for construction industry and if the demand of IMF is accepted by the government it will be the last nail in the coffin of Pakistan’s struggling economy.
He said that the present government of Imran Khan, foreseeing need of housing in Pakistan, had announced to build 5 million low cost houses during election campaign and after coming to power announced Amnesty Scheme for real estate and construction (also gave status of industry to construction) with the facilities of bank financing on special rates of housing. In view of World Bank’s report the facilities given for real estate and construction was a right step, he said.
READ MORE: FBR reviews tax incentives to construction industry
Chairman ABAD said that due to Covid 19 Pakistan’s economy has suffered in many ways but it does mean that the main support for the economy itself be uprooted. IMF has put forward this demand to the State Bank of Pakistan saying that wind down these measures “out of concerns for financial stability. Banks’ housing lending targets could present risks to financial stability”.
He said that this is ironic that World Bank accepts that real estate industry makes up 70 percent wealth and it contributes significantly to GDP. In the light of the World Bank’s report and need of housing the government should outrightly reject the demand of IMF and continue special measures for the real estate and construction industry because it is the fact that whenever any developed country faces recession, it gives top priority to construction industry to stabilize the economy.
READ MORE: Some obstacles challenging construction sector: PM
Moreover, governments all over the world facilitate their people to purchase first home through subsidies and finance and Pakistan is also a part of this world then why IMF is trying to deny the right of people to have their dream homes, he asked adding that in Pakistan slums or Kutchi Abadis are growing; specially in Karachi more than 54 people are forced to live in Katchi Abadis due to lack of financing is IMF wants Pakistan to become a Kutchi Abadi country?
However, if the government will succumb to IMF’s pressure in this matter, the economy of Pakistan will collapse and no one will be there for revival of national economy, he warned.
READ MORE: Ordinance notified to extend tax amnesty for construction sector
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Builders, developers stop work on all projects in protest
KARACHI: Builders and developers have announced to stop construction work on all their projects from Friday, November 26, 2021 against the declaration of null and void to approved projects.
Mohsin Shekhani, Chairman, Association of Builders and Developers Pakistan (ABAD) in a statement said that work at all the approval projects in Karachi will stop functioning.
“Despite the approvals of the buildings and projects from all the government agencies they stand null and void,” he said.
He urged the government to tell the builders and developers, who are the final authority from the get approval.
Shekhani said that ABAD is against the illegal encroachments and illegal constructions. “Illegal projects if constructed it is a duty of government agencies to check and give NoC,” he added.
ABAD is following approvals strictly. But despite approvals and getting permission the moves to shatter the confidence of the people, he added.
“We are backstabbing the overseas Pakistani and local investors who have invested millions of rupees,” he said. Confidence of Overseas and local investors would be perturbed, he added.
From Friday work at projects in Karachi, Hyderabad and other cities will be halted, he announced.
Slowly the work in other parts of the countries will also be stopped, Shekhani added.
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MTO Karachi asks taxpayers to file income tax returns
Hameed Memon, Chief Commissioner Inland Revenue of the Medium Tax Office (MTO) in Karachi, has issued a heartfelt appeal to taxpayers, urging them to file their income tax returns as a national obligation and a service to the country.
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Builders, developers demands action against price hike
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.
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ABAD seeks amnesty scheme extension for six months
KARACHI: Association of Builders and Developers (ABAD) has urged the government to extend the amnesty scheme for six months to document another Rs1 trillion.
Fayyaz Ilyas, Chairman, ABAD, in a statement said that the investment in Construction Industry will double to Rs2 trillion if special construction package is extended at least for six months.
Quoting the statement of Information Minister for State Farrukh Habib that an amount Rs1 trillion had been invested in construction industry after announcement of Amnesty Scheme, chairman ABAD said that a number of projects could not be registered under the scheme announced by the Prime Minister due to hurdles in approval, especially in Sindh.
“If these projects could get chance to register under this scheme, the investment will double from Rs1 trillion to Rs2 trillion,” he said.
Fayyaz Ilyas said that Prime Minister Imran Khan had extended date of Amnesty Scheme upto June 30, 2021. However, due to fourth wave of Covid-19 and hurdles in approval of projects, date of Amnesty scheme may be extended up to December 31, 2021 to fetch more investment in construction and real estate business.
He said that despite second and third wave of Corona construction activities, especially production of steel, cement and other construction materials is on the rise due to Amnesty Scheme.
Many of allied industries are planning expansion to meet rising demands and some of them have imported billions of rupees machineries to expand their industries, which shows that if the amnesty scheme is extended, the economy of Pakistan will become a vibrant and the dream of making Pakistan Asian Tiger could be realized, he hoped.