Following a significant depreciation of the Pakistani currency and an increase in the cost of raw materials, the price of steel bars has surpassed Rs280,000 per tonne, according to sources, on Thursday.
A slowdown in the construction industry is being caused by the all-time high steel price.
The depreciation of the rupee versus the dollar, according to Hamad Poonawalla, president of the All Iron Steel Merchants Association, is driving up the price of steel.
Poonawalla further said the local production of iron is not sufficient to meet the country’s needs due to the closure of Pakistan Steel Mills.
In order to obtain the material held up at the ports and bring down prices, he urged that the government guarantee the opening of LCs.
“The lack of iron imports has completely destroyed the construction industry. The construction industry would be completely shut down if the current trend continues, he said.
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