KARACHI: Over 60 percent of Pakistan’s construction activities have come to a standstill following an unprecedented increase in the rates of basic building material amid rising global commodity prices, industrial stakeholders said on Thursday.
According to an estimate by Pakistani builders, the prices of steel, cement and other construction material increased by more than 70 percent due to the rising freight costs, weaker rupee and surge in local demand.
“The prices of all raw materials have increased by more than 70 percent during the last one year,” Mohsin Shaikhani, chairman of the Association of Builders and Developers of Pakistan, told Arab News. “About 50 to 60 percent of construction activities in the country have come to a standstill.”
Shaikhani added the overall construction cost had gone up from about Rs2,500 to Rs4,000 square feet across the country.
Pakistan’s construction sector contributed about Rs794 billion to the gross domestic product in FY20.
The building activities during the same period increased by 8.1 percent due to the government support and uptick in investment by the private sector, according to a report by the Pakistan Credit Rating Agency.
The construction sector absorbs about 7.6 percent of the country’s total labor force and provides stimulus to over 40 allied industries.
The country’s public sector development program primarily drives the construction demand since it allows the government to spend on mega projects like highways, bridges and other infrastructure development programs.
The companies working on the public sector projects said they were the main victims of price escalation since they had to stop construction work on multiple schemes.
“About 90 percent work on the projects across Pakistan has come to a standstill due to frequent price escalation of building material,” Saeed Ahmed Mughal, secretary information of Karachi Contractors Association, a representative body of companies mainly working on government projects, said. “Only those who have material in their stock are currently active.”
“It is very difficult for constructors to match the current expenses with what they had quoted during the bidding process,” he continued. “We want the federal and provincial authorities to factor in price escalations before we resume our work.”
The price escalation has also impacted the estimates of Prime Minister Imran Khan’s flagship Naya Pakistan Housing Scheme which aims to build five million units for low- and middle-income segments.
Pakistan is currently facing a housing backlog of 11 to 12 million units.
“The low-cost housing projects are in a difficult situation,” said Shaikhani. “The valuation of a house which was worked out at Rs3 million initially has increased to Rs4.5 million.”
Chairman of Naya Pakistan Housing Task Force Zaigham Mahmood Rizvi agreed the construction sector was facing challenges due to the rising rates of building material.
“The developers and builders have been telling us it is difficult to construct a house according to their earlier estimates,” Rizvi said.
He added, however, the Naya Pakistan Housing and Development Authority was trying to come up with a solution.
“The negotiations for the revaluation [of projects] are going on,” he informed.
The price of steel, a key building material used for construction, has increased by 85 percent since March 2020, and it is currently trading around Rs192,000 per ton due to the short supply.
Rizvi maintained the operationalization of the country’s two steel mills – the Pakistan Steel and Tuwairqi Steel Mills that was set up by a Saudi group – was likely to provide some relief to the construction sector.
Some Pakistani traders expect reduction in steel price in the coming months, hoping it would also spur construction activities.
“The international market is showing some corrections and if the impact is passed on to consumers in Pakistan it will reduce the price to about Rs30,000 per ton within the next three months,” Shammon Baqir Ali, chairman of Karachi Iron and Steel Merchants Association, said while talking to Arab News.
The Naya Pakistan Housing and Development Authority did not respond to queries regarding the progress on low-cost housing units and possible policy measures to rescue the troubled construction sector.
Pakistani builders say 60 percent construction projects on standstill amid rising material costs
https://arab.news/2nkvb
Pakistani builders say 60 percent construction projects on standstill amid rising material costs
- Industrial stakeholders blame an overall surge in global commodity prices, higher freight charges and weaker rupee for escalating building material rates
- The increase in prices has also impacted Prime Minister Imran Khan’s low-cost housing projects under the Naya Pakistan scheme
Pakistan launches final nationwide polio drive of 2025 to vaccinate 45 million children
- Campaign comes as Pakistan records 30 polio cases this year, one of only two countries where virus is endemic
- Health minister urges parents to welcome vaccinators as insecurity, misinformation hinder eradication efforts
ISLAMABAD: Pakistan on Thursday launched its final polio vaccination campaign of the year, with Health Minister Mustafa Kamal administering drops to children under five as part of a nationwide effort to reach 45 million children, the country’s polio program said.
The Dec. 15–21 drive is part of Pakistan’s decades-long struggle to eliminate wild poliovirus. Pakistan and neighboring Afghanistan are the only two countries where the virus remains endemic, keeping global eradication efforts at risk.
Pakistan has reported 30 polio cases so far this year. The incurable and highly infectious virus can cause lifelong paralysis and can only be prevented through repeated oral vaccinations and routine immunization, health officials say.
“I want to take this opportunity to speak directly to parents and caregivers. When our polio vaccinator knocks at your door, I urge you to welcome them in and ensure that every child under five in your house receives two drops of this essential vaccine,” the polio program quoted Health Minister Kamal as saying.
“I also urge you to advocate for vaccination in your families and communities and create a welcoming environment for our vaccinators.”
The new campaign comes days after Pakistan conducted a nationwide measles, rubella and polio vaccination drive from Nov. 17–29, which targeted 22.9 million children across 89 high-risk districts.
Pakistan recorded 74 polio cases in 2024, a steep rise from six in 2023 and just one in 2021, underscoring the volatility of eradication efforts in a country where misinformation, vaccine hesitancy and political instability have repeatedly disrupted progress.
Violence has also hampered the program. Polio teams and their security escorts have been attacked frequently by militants and religious hard-liners in parts of northwestern Khyber Pakhtunkhwa and southwestern Balochistan. Officials say continued security threats, coupled with natural disasters such as recent flooding, pose major obstacles to reaching every child.
Pakistan has drastically reduced polio prevalence since the 1990s, when annual cases exceeded 20,000. By 2018, the number had fallen to eight. But health authorities warn that without consistent access to children, particularly in high-risk, underserved region, eradication will remain out of reach.
