By Asad Cheema
ISLAMABAD: The Pakistan Economy Watch (PEW) on Monday said a constant rise in the price of construction material is hitting economic activities which should be noticed by the authorities.
Construction activities are being severely affected because of profiteering while the employment opportunities are being affected, it said.
The price rise has reduced construction activities by almost 25 percent while the construction package is taking its last breath, said PEW Chairman Brigadier (retd) Muhammad Aslam Khan.
In a statement issued here today, he said that the price of cement has reached eight hundred and fifty rupees and if it is not controlled, its price will soon hit the mark of one thousand rupees.
Similarly, he said, the price of steel bars has crossed Rs 200,000 per tonne while the prices of wood, aluminium, paint and other construction materials are also increasing which has reduced the construction activities across Pakistan.
Aslam Khan said that the price of steel bars has doubled since the announcement of the construction package, which has led to the closure of many projects in the private sector.
He said that economic stability is not possible if there is no political stability in the country.
Under such circumstances, local business owners shift their capital abroad while foreign entrepreneurs also suspend investment plans which is like poison for the economy.
Currently, the stock market and the rupee continue to fall and trade imbalances are exacerbating the situation, he said, adding that the continued rise in food and energy prices and the breach of the agreement with the IMF are increasing the risks to the economy.
Most market participants, individuals or institutions prefer a calmer environment. If political uncertainty intensifies, investors require a higher return on their investment to compensate for bearing additional risks.
