Pakistan's Construction Crisis Deepens as Steel Prices Soar Amidst Economic Turmoil
Islamabad, Pakistan: Building dreams in Pakistan just got costlier. The already strained construction sector faces a fresh blow as steel prices witness another steep increase, exacerbating the woes of aspiring homeowners amidst an ongoing economic crisis.
This recent surge follows a pattern of rising construction material costs, fueled by a combination of factors. Never-ending delays in international shipments further dampen any hope of recovery, leaving homebuilders grappling with escalating expenses.
The latest culprit: a Rs.5,000 per ton hike in iron rebar, commonly known as steel. This increase, attributed to surging production costs and supply chain disruptions linked to the Middle East crisis, pushes the retail price of both local and imported steel rebar to a staggering Rs.240,000 - Rs.260,000 per ton.
Locally produced iron now costs Rs.240,000 compared to its previous price of Rs.236,000, while branded iron sees a jump from Rs.255,000 to Rs.260,000. Even crude iron, or scrap, isn't spared, witnessing a rise to Rs.160,000 per ton.
Experts warn that further disruptions in the raw material supply chain could exacerbate this already precarious situation, pushing steel prices even higher.
However, there's a silver lining: cement prices saw a slight decrease, currently resting at Rs.1,246 per bag. This minor reprieve is unlikely to offer much solace considering the significant rise in steel costs, a crucial component for most construction projects.
The ongoing price increases paint a worrying picture for Pakistan's construction industry, potentially delaying projects, increasing costs for consumers, and impacting overall economic growth. With no immediate end in sight for the economic crisis or supply chain disruptions, the path ahead for aspiring homeowners and the construction sector remains uncertain.
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