KARACHI: The Chairman Association of Builders and Developers of Pakistan (ABAD), Altaf Tai, has called on the government to reverse the Regulatory Duty (RD) and Additional Regulatory Duty (ARD) on the import of steel scrap to support the country’s construction industry.
Speaking at a press conference, Tai highlighted that ABAD had accepted the duties when steel scrap prices were low in the international market.
However, now that the prices have risen, the government should abolish the duties to provide relief to the construction sector.
As per the details, Optimus Research Steel Sector Analyst, Mehroz Khan, stated that reducing the duties on imported steel scraps would have a positive impact on the cost of long steel producers, which would, in turn, affect the rebar prices.
It was also mentioned that steel manufacturers have formed a cartel to keep the prices high despite the low price of raw materials in the international market.
ABAD Patron-in-Chief, Mohsin Sheikhani, shared that ABAD’s boycott of steel purchases had forced steel manufacturers to lower their prices.
He emphasized that approximately 25 million people are connected with the construction industry, and due to the soaring prices of construction materials, 350 projects are currently halted. To revive the industry, the government must reverse the duties.
Furthermore, the construction industry in Pakistan has been facing severe challenges due to the skyrocketing prices of raw materials, including steel. With the increasing demand for housing and infrastructure development in the country, the government’s support is crucial to ensure the growth of the sector.