FCCI concerned over high prices of construction material despite decrease in POL prices

FAISALABAD: Faisalabad Chamber of Commerce and Industry (FCCI) has expressed grave concerns over high prices of construction material despite remarkable decrease in POL prices in international market and termed it as major hurdle in development and initiating new projects.

In a statement issued here on Sunday, the FCCI said that shortage of bricks coupled with increase in its rate due to continuous strike of brick kiln owners was disappointing. It said that the cartelization of cement manufacturers have become a stumbling block in the reduction of construction material after the historic cut in POL price in the international market.

Senior Vice President of FCCI Syed Zia Alamdar Hussain said that the rate of 1000 bricks prior to the strike was Rs.6800 which is now soaring at Rs.8000. It is a major setback to the construction sector as many mega infra structural projects are laying incomplete only due to the non availability of bricks etc.

He said that the construction industry was expecting a visible decrease in the price of cement, sand, crush and iron bar after the decrease in oil prices in the international market but the cartelization has stopped dissemination of the fruits of reduction in POL prices.

Syed Zia Alamdar said that the cement manufacturers have created artificial shortage to maintain the existing price in the local market which otherwise must have depreciate 25% of its existing price.

Moreover, the imported iron bar is available at a lower price while local products are costlier which has disturbed the natural equilibrium of the prices of imported and locally manufactured products, he added.

The FCCI Senior Vice President said that domestic construction industry which was expecting a boom after the decrease in POL prices is facing tough competition. He said that the government should direct the National Tariff Commission and other organizations to take the notice of the cartelization of cement manufacturers so that construction industry could benefit and generate economic activities in addition to creating new job opportunity for its workforce.

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