KARACHI: The Association of Builders and Developers of Pakistan (ABAD) has expressed concerns over the State Bank of Pakistan’s decision to raise the policy rate, warning that the increase will deepen the construction industry’s difficulties.
According to ABAD Chairman Muhammad Hanif Gohar, the policy rate, now up to 12 percent, would hurt not only the construction sector but also the wider economy and employment.
He urged the central bank to reverse the hike and cut interest rates to support economic recovery.
Gohar said higher rates make borrowing more expensive, which is likely to raise the cost of construction projects, and added that investments in the construction sector could suffer and developers may struggle to launch new projects.
He further said cement, steel, and other building materials could become more costly after the rate increase, adding pressure to an industry already under strain and making homes and other structures more expensive for ordinary citizens.
Copyright Business Recorder, 2026