Despite claims of the government that there are "no price hikes" and "media exaggerates," contractors stopped working on all government-funded housing projects months ago because of cost overruns, the Public Accounts Committee (PAC) was told on Thursday, as cited by Dawn News.
Housing Secretary Dr Imran Zeb told the committee that the development of housing programmes started by the PTI administration had been halted due to an "extraordinary" rise in steel and cement prices in August last year.
The PAC was reviewing the 2019–20 housing and works ministry audit report.
Secretary Zeb said that while work on government housing projects was proceeding as planned, the price of steel had risen from Rs140,000 per tonne to Rs210,000 in August 2021.
Since August 2021, work has been halted because of rising material costs, and the contractors wanted a cost reduction.
The housing ministry turned down their request because the new prices were too high for the PAC and PPRRA benchmarks and the rules that apply.
The Pakistan Engineering Council and the Association of Government Contractors wrote to the PM, citing their inability to work at current pricing. Dawn reported that the federal cabinet looked into the issue and sent it to the Planning Commission.
