The prices of cement and steel have shown a hike in the local market amid a rise in international commodity prices.
According to the latest numbers issued by the Pakistan Bureau of Statistics, the local cement prices have been increased by Rs 30 per bag at 50kg in the South region i.e. Sindh and Balochistan province. While the prices in the South region were an average of Rs 765 per bag before the hike and will fix at Rs 795 per bag effective on Monday.
In the meantime, prices of flat steel manufacturers have also increased by Rs 3,000 per ton.
Due to the latest price hike, the rate of Galvanised steel coils and CRC (Cold rolled steel) will be Rs 215,850 per ton and Rs 208,500 per ton, respectively.
The expert shared their point of view that besides the coal increase in price, depreciation of the Pakistani rupee and growing freight charges are also of the reasons, as Pakistan imports coal from South Africa and other countries. Similarly, the rising steel prices are the result of increased rates of Hot Rolled Coil (HRC) in the global market.
Moreover, sources stated that as the influence of cement, steel price increase will be deceased, the cost of construction would increase, although marginally.
Pakistan is a country having more than 200 million people, and its high population growth rate energies urbanization and increases the demand for housing from almost every division of society. As per an estimate, there is a lack of 12 million residential units in the country; mostly in the low- and middle-income groups, State Bank of Pakistan (SBP) shared their survey statistics.
The Pakistan Economic Survey for FY21 reveals that the construction sector contributed 2.5% in GDP. Moreover, 7.71% of the engaged Pakistani labor force is involved in the construction sector.