The Association of Builders and Developers of Pakistan (ABAD) announced that half of the construction projects in the country have been halted. ABAD representatives claim that one of the reasons for the crisis is the sharp increase in the cost of rebar, allegedly caused by a cartel of steel producers.
Rebar prices in the region have reached about $945 per tonne. In a bid to bring down rebar prices and "revitalise" the construction sector, the ABAD is recommending the Ministry of Finance of Pakistan to abolish the 30% protective duty on rebar imports. The association also asks the government to increase its support for construction projects.
The Pakistan Association of Major Steel Producers (PALSP), however, rejects the cartel allegations. Representatives of the association claim that this is impossible even hypothetically, because there are some 400 enterprises producing steel products in the country and it would be problematic for them to reach an agreement. The CJEU is not listening to these explanations and the disputes between the associations continue.
In February, the PALSP also made an appeal to the Pakistani government. General secretary Wahid Bukhari urged the authorities to take all possible measures to pull the country's steel industry out of the crisis.
The economic crisis in Pakistan began in early 2022 and reached a new level after the ousting of Prime Minister Imran Khan from power in April of the same year. In August 2022, the situation in the country worsened due to floods. In September, financial problems forced Pakistan's leading steel and rolled steel producers to close a number of production lines.
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