Ayesha Mudassar

The construction sector, which employs millions of workers, is facing a tough time currently mainly due to the withdrawal of incentives it was enjoying until recently. The real estate builders say the immense price fluctuations have also added to their woes. Talking to WealthPK, Junaid Alam, Managing Director of Gold Land Estate and Builders, said there was a boom in the construction industry until they enjoyed incentives, including a construction package that allowed people to invest in the sector without disclosing their source of income. Banks were asked to reserve 5% of the portfolios for the sector, and were offering loans at low-interest rates for the construction of houses.

He said the tax breaks and cheaper interest rates helped in raising investment and boosting the economy. Junaid said the construction industry plays a vital role in the development of the economy. He said the growth of the construction industry promotes the development of allied industries. Danish Ahmad, Sales Manager at AAA Associates Real Estate, said the prices of key construction materials have increased significantly due to the ongoing inflation, massive rupee devaluation, high policy rate, and higher taxes. He pointed out that a notable increase in the price of cement and steel has also been recorded.

Pakistan has been witnessing unprecedented inflation during the past few months. According to data released by the Pakistan Bureau of Statistics (PBS), annual inflation was recorded at 27.6% in January 2023 - the highest increase since May 1975. The Pakistani rupee, which was valued at 182 rupees against the US dollar in March 2022, ended March 2023 at 283 rupees – a depreciation of 55%. “The construction industry is considered the backbone of any economy as it provides enormous employment opportunities. We appeal to the government to take prudent steps to boost the sector,” Danish said.

Credit : Independent News Pakistan-WealthPk