Govt contractors’ associations protest against hike in prices

Warn rise in rates of construction material will lead to disastrous collapse of industry


Our Correspondent November 11, 2021
PHOTO: REUTERS

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KARACHI:

The Karachi Constructors Association (Sindh) and the Constructors Association of Pakistan (Sindh Chapter) staged a joint protest on Wednesday.

The demonstration was attended by contractors engaged in infrastructure works in the Government of Sindh and its subsidiaries. The current storm of inflation in Pakistan has brought the construction industry to the brink of disaster.

In a joint statement, the office bearers of both the associations said, "If the situation remains as it is, no contractor in Sindh or Pakistan will be spared bankruptcy and all kinds of development work would stop across the country which would cause irreparable damage to the country.

"The rise in the market price of goods in the last six months is unbearable. At present, steel rates have increased by 100 per cent, cement rates are up by 42 per cent and asphalt rates have gone up by 40 per cent. In addition to this, the phenomenal increase in crush, sand, gravel and other construction materials have become big obstacles in the ongoing public projects. Overall construction prices have risen by more than 120 per cent since the announcement of government's 2012 schedule.

Read More: PM calls for cut in basic items prices

"With the increase in copper rates in power cables, the prices of PVC pipes have gone up by 50 per cent and the prices of raw wood and its products and aluminum products have also gone up by 50 per cent, there will lead to serious consequences in the coming days.

"The Government of Sindh and its subsidiaries should immediately announce immediate relief to the contractors in their respective projects."

The sub-contractors, protesting against the exorbitant hike in prices of construction material, have demanded of the government that the scales of price difference should be paid to the contractors for all the issued works of all kinds, big and small; payment should be made on the difference between the bank markup and inflation due to the delay in making payment of bills contractors in all government institutions; relief should be extended on income tax deduction; payment of contractors' bills in all government institutions should be ensured within 30 days in accordance with the rules of Sindh Public Procurement Regulatory Authority; the clause for payment of price difference in all government tenders should be included in the tenders called for; tenders will be completely boycotted in all government agencies if the newly called tenders are called under the old schedule or if the contractors are not assured to accept the difference in price with the payments of the contractors because the patience of the contractors is running out."

Published in The Express Tribune, November 11th, 2021.

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