Prices of iron rods touch all-time high in Pakistan

ISLAMABAD: Steel manufacturers have increased the price of iron rods, leading to a surge in the cost of by Rs15,000 per tonne.

According to steel manufacturers, the increase in price of iron rods was a result of expensive electricity and the rising value of the dollar.

After the hike, the per tonne price of iron rods has reached Rs260,000 in the local market.

Whether it is for building houses or constructing commercial buildings, steel remains an essential necessity, and the price hike affects the construction sector.

During the past year, there has been an approximately 50 per cent increase in the cost of construction materials, impacting various construction-related industries.

The steel bar price in Pakistan has been on an upward trend since 2022, when the government increased the power tariffs under an IMF deal.

The power sector is facing a huge challenge of reducing its public debt, which has accumulated to nearly Rs4.2 trillion rupees.

The steel industry has also been affected by the high international scrap prices and increased demands from China and other countries.

The local steel sector plays a vital role in the economic growth of the country, as it provides employment to thousands of workers and contributes to the GDP.

The steel rate in Pakistan varies depending on the grade and quality of the product. The most common grade used by the construction industry is 60-grade steel bar, which is produced by a number of major players in the sector.

People linked to the construction industry have expressed its concerns over the rising steel prices and urged the government to take measures to stabilize them.

They have also demanded that the government should provide relief to the builders and developers by reducing taxes and duties on construction materials.

Read more: Electricity prices raised to secure IMF deal, says Shehbaz

The government, on the other hand, has claimed that it was taking steps to support the steel sector and facilitate its growth.

It has announced various incentives and subsidies for the industry, such as reducing gas tariffs, providing electricity at subsidised rates, and exempting import duties on raw materials.

The previous Pakistan Tehreek-e-Insaf government launched several mega projects under the Naya Pakistan Housing Programme, which aimed to provide affordable housing to low-income groups.

The project was expected to boost the demand for steel and other construction materials in the country.

However, some experts have warned that the steel industry may face further challenges in the future due to environmental issues, global competition, and technological changes.

They have suggested that the industry should adopt modern methods of production, improve its quality standards, and diversify its product range.

They have also recommended that the industry should invest in research and development, innovation, and human resource development to enhance its competitiveness and sustainability.