Steel bar makers have increased the price of steel bars by Rs 2000 per ton. The hike in price is not for the first time; as back in July, prices had also increased by Rs 5000 per ton.
The Pakistan Association of Large Steel Producers has notified that steel prices are increasing globally, and a similar trend is also being observed in Pakistan. Due to the rise in the price of steel bars, the cost of construction on a high-rise project has risen by 6% to 9% as steel bars hold 40% to 45% share in the total construction cost of such developments. The construction cost in Pakistan for housing projects has also crawled up by 4% to 6% as the share of steel bars ranges between 15% and 20% in the total expenditure. As overall costs are increasing, so is the cost of labour. In such times, development projects can get significantly delayed and not be completed in the stipulated time frame.
The year 2020 was difficult for most economies due to the Covid-19 pandemic. However, the construction sector was the first sector to resume its activity. Several incentives for the construction sector were introduced in the last year. Despite the pandemic shutting down the world in 2020, a plethora of construction-related incentives by the incumbent government helped the sector survive and thrive. The government is working round the clock to boost the construction sector of Pakistan as it works as a catalyst for economic growth.
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