Karachi: According to the news reported on 2nd March, the Association of Builders and Developers of Pakistan (ABAD) Chairman Altaf Tai requested the government to reverse the Regulatory Duty and Additional Regulatory Duty imposed on the import of steel scrap. In this way, they can help in supporting the construction industry.
The association accepted the government-imposed taxes when the price of steel scraps was low on the global market, the organisation’s head revealed during a news conference. To relieve the construction industry, the government should now repeal the taxes.
According to Mehroz Khan, an analyst at Optimus Research, the reduction in the tariffs above on imported steel scraps will increase the profitability of long steel producers and drive down the rebar cost. Notwithstanding the low cost of raw materials on the global market, it was suggested that the steel producers had formed a cartel to maintain high pricing.
Chairman of the association, Mohsin Sheikhani, said the steel producers had to lower their prices due to ABAD’s boycott of steel purchases. He continued that almost 350 projects have been put on hold due to the rising cost of construction materials, adding that around 25 million people are employed in the sector. The government needs to reverse the duties to revitalise the sector.
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