‘Duties on construction material must be revoked’

ABAD leadership says if govt doesn’t help, builders will move investments to other countries

KARACHI:

Stakeholders of the construction industry, on Wednesday, urged the government to reverse the regulatory duty (RD) and additional regulatory duty (ARD) imposed on the import of steel scrap to support the sector.

During a press conference, the Association of Builders and Developers of Pakistan (ABAD) Chairman Altaf Tai said steel is a key component used in the building process and demanded that the government immediately abolish the RD and ARD to support the construction industry as well as the country’s economy.

“When steel scrap prices in the international market were low, we supported the government and accepted these duties. But now we urge the government to remove RD and ARD to give relief to the construction sector and to those people who dreams of owning a house. It will also secure the livelihood of thousands of labourers,” he said.

Speaking to the Express Tribune, steel sector Analyst at Optimus Research Mehroz Khan said, “The reduction in duties on imported scrap will have a positive impact on the cost of long steel producers and this benefit will translate in the rebar prices.”

Despite the low price of raw material in the international market, steel manufacturers have formed a cartel to keep higher prices.

The association’s Patron-In-Chief Mohsin Sheikhani said, “ABAD’s boycott of steel purchase has forced steel manufacturers to bring down the price of steel to Rs271,000 from Rs345,000 per tonne.”

After a 20-day boycott, the steel manufacturers reduced their price for steel by Rs74,000 per tonne.

“Around 25 million people are connected with the construction industry and, at present, construction on 350 projects has come to a halt due to the soaring price of construction material,” lamented Sheikhani, warning that, “If the government will not take positive steps, builders will be forced to move their investments to other countries.”

“To revive the economy, the government needs to create certainty – after all, the construction industry is the backbone of the economy,” said the ABAD patron-in-chief.

Published in The Express Tribune, March 2^nd, 2023.

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