Work stops on 80% construction projects

ABAD Senior Vice Chairman Nadeem Jeeva told The Express Tribune that there was 100 per cent compliance from ABAD members on the decision to stop steel purchases.

He said the steel mills are increasing the prices and are forming a cartel. Jeeva said the relevant regulatory bodies and the competition commission were not performing their mandated duties to stop cartelization for price manipulation.

Subsequently, ABAD decided to buy steel at high prices.

Jeeva explained the reason for the steel boycott, adding that builders and developers had booked apartments, houses and other construction projects at Rs5,000 per square foot.

However, from January 1 to date, the per square feet price of construction has increased to Rs6,000.

He attributed this exorbitant increase to an Rs80,0000 per ton hike in steel rates since January 1, which now stands at Rs300,000. Whereas he reminded the steel price was Rs130,000 per ton two years ago.

The ABAD official said runaway inflation had affected the construction sector's recovery.