Construction cost doubles after dollar appreciation
March 11, 2023 04:32 AM
In the wake of increase in the US dollar rate by Rs92 in just one year, the construction cost has doubled, reported 24NewsHD TV channel on Friday.
Talking to 24News, Association of Builders and Developers head Mohsin Sheikhani lashed out at the government for failing to control the dollar rate and increasing the interest rate.
He said that inflation had increased due to hike in the dollar rate. “One ton of iron rod that once cost over Rs100, 000 has now jumped to Rs0.3 million,” he said, adding, “Who will borrow a loan from a bank at 22 per cent interest rate for building a home?”
Similarly, he went on to say, prices of cement, tiles and blocks had also skyrocketed. “In the present circumstances, it has become difficult for a common man to materiliaze his dream of having his own house,” he added.
Sheikhani said construction was almost impossible with such an expensive iron rod.
Apart from that, he added, the country’s economic situation was deteriorating with each passing day. “Increasing inflation has almost eliminated the buying capacity of people,” Sheikhani said, and appealed to the government to take steps to bring down inflation.
Reporter: Ashraf Khan