Pakistan’s construction industry faces its worst slump in years due to the absence of buyers, escalating prices of the raw materials and developers’ inability to generate finances and credit-lines for their projects, a senior industry official said on Monday.
The uncertainty surrounding the economy discourages investment and a lot of apartment buildings remain vacant in the absence of buyers.
The sponsors don’t have the money to complete the projects.
Till two years back, price of steel and cement were relatively stable. But now we are witnessing 12-15 percent price escalation each year.
Banks, already burdened with with loans forcibly extended to non-performing assets owned by the all-powerful Pakistan Army, are reluctant to lend money to constructors. It’s not easy to establish credit lines for the civilian industry in pakistan.
Earlier: napaki.tumblr.com
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