The Association of Builders and Developers of Pakistan (ABAD) has met officials from the Competition Commission of Pakistan demanding action against alleged cartels in the steel, glass, and tiles industries.
ABAD’s chairman Muhammad Altaf who led the delegation stated that these manufacturers are jacking up prices artificially, burdening the public to face the effects of inflated prices. The climbing costs of construction projects obstruct potential investments and hinder existing projects with delays and budget overruns.
ABAD states the meeting’s objective was to enable fair competition, ease the troubles of construction and support the public through lower prices.
The prices of construction materials have increased drastically in the past two years with cement bags costing double at around Rs. 1100 and steel tripling to around Rs. 300,000 per ton and retreating back to Rs. 260,000. All of it has slowed down industrial activity and affected job creation.
Pakistan’s ongoing economic woes with historically high inflation and exchange rate uncertainty have played a key role in making matters worse for the sector with declining investors’ confidence and halting both domestic and foreign investments into construction.
In addition to being a big job creator itself, the construction industry links with 42 other sectors and its decline affects them due to reduced demand, fuelling further unemployment.
ABAD chairman asked CCP chairperson Rahat Kaunain Hassan to take decisive action against alleged cartelization in the sector and highlighted that it’s their responsibility to protect consumers and ensure fair competition.
CCP’s chairperson assured him of a thorough investigation into the matter and actions per laws. She also urged ABAD to provide related data and facts regarding this alleged cartelization.
Source: Pro Pakistani