The increase in steel prices in Pakistan is driving up construction costs

The price of construction steel, also known as rebar, has risen by 5,000 Rs (approximately 18 dollars) per ton. This increase is attributed to rising production costs caused by the crisis in the Middle East and disruptions in the supply chain.

With the latest price hike, both domestic and imported construction steel retail prices have soared to 240,000 - 260,000 Rs per ton (approximately 859-931 dollars). Local steel has risen from 236,000 Rs (about 845 dollars) to 240,000 Rs (approximately 859 dollars) per ton.

Any further disruptions in the raw material supply chain could exacerbate the increase in steel prices.

Meanwhile, cement prices have shown a slight decrease, currently standing at 1,246 Rs per bag (approximately 4.46 dollars).

Scrap prices have increased to 160,000 Rs per ton (approximately 572 dollars).

The price hikes are placing the construction sector in Pakistan under strain. The rise in construction costs is hindering the initiation of new projects and delaying the completion of existing ones. Additionally, it presents a significant obstacle for those looking to purchase homes.

It is imperative for the government to take urgent measures to curb the increase in steel prices. Failure to do so may lead to a more significant crisis in the construction sector.