KARACHI: Association of Builders and Developers of Pakistan’s (ABAD’s) boycott of steel purchase has brought positive result as steel manufacturers have brought down prices of steel to Rs271000 from Rs 345000 per ton. ABAD has also demanded of the government to abolish Regulatory Duty (RD) and Additional Regulatory Duty (ARD) to support construction industry and the economy of Pakistan.

This was told during a press conference by Patron-In-Chief Mohsin Sheikhani, Chairman ABAD Altaf Tai, Senior Vice Chairman Khawar Munir, Vice Chairman Nadeem Jeewa, Chairman Southern Region Raheel Rinch and a large number of members here at ABAD House on Wednesday.

They said that despite the low prices of raw materials in international market, local steel manufacturers have formed a cartel to get maximum profit by increasing prices. They said that was the reason why ABAD had to boycott purchase of steel which has brought a positive result.

They said that ABAD’s boycott for 20 days made the sense and steel manufacturers had to bow before our demands and reduced prices of steel by Rs 74000 per ton. They said that prices of steel in the international market are Rs 250000 per ton and manufacturing cost is Rs. 230000 and as such prices of steel should not be more than Rs. 250000 per ton.

They said that initially ABAD has purchased 2500 tons of steel at the rate of Rs. 271000 and this steel will be provided to members of ABAD to continue construction of their projects. They said that 25 million people are connected with construction industry, adding that to save their livelihood and strengthen the national economy we will talk to government for reduction of RD and ARD on steel and taxes on other materials.

They said that at present construction on 350 projects has been stopped due to ever soaring prices of construction materials and if the government failed to take positive steps, builders will be forced to move their investments to other countries.

Copyright Business Recorder, 2023