Tag: Price Surge

  • Steel prices surge to record high in Pakistan, posing a major challenge for construction sector

    Steel prices surge to record high in Pakistan, posing a major challenge for construction sector

    The construction industry in Pakistan is currently grappling with a formidable challenge as the price of steel, its primary raw material, reaches an unprecedented high. On Monday, leading steel rebars producers announced a substantial increase of Rs5,000 per metric ton, attributing it to a scarcity of raw materials and a significant surge in the basic power tariff.

    According to Samaa, this decision to raise steel prices has sparked concern throughout the construction sector, as the cost of steel now stands at a staggering Rs260,000 per metric ton. Such a sharp escalation in costs has understandably raised eyebrows and placed industry players under mounting pressure to navigate these burgeoning challenges.

    Adding to the predicament is the recent increase in electricity tariffs, further exacerbating the situation and intensifying the strain on steel manufacturers as they grapple with soaring production costs.

    As a result, the construction industry finds itself confronting a multifaceted burden due to the surge in steel prices, impacting various aspects of their operations.

  • Wheat prices soar in Lahore, hitting Rs5,100 per 40kg bag

    Wheat prices soar in Lahore, hitting Rs5,100 per 40kg bag

    In Lahore, the price of a 40kg bag of wheat has surged to Rs5,100, which is significantly higher than the government’s fixed rate of Rs3,900. The leader of the flour mills association has stated that the government’s rate is not being implemented in the market.

    As a result of the increase in wheat prices, the price of a 20kg bag of flour has risen to Rs2,750, as opposed to the government’s fixed rate of Rs2,316.

    The flour millers have explained that they are unable to sell the wheat at lower rates after procuring it at an exorbitant price from the open market.

    Last month, officials from the Punjab Food Department foiled an attempt to smuggle wheat and flour to Afghanistan. More than 70 containers loaded with wheat and flour were being smuggled to Afghanistan from Rawalpindi Motorway.

    During the inspection, district food authority officials seized 46 containers loaded with wheat and 16 containers of flour. The wheat and flour were being transported from Punjab to Afghanistan, despite a ban on wheat transportation from the province. The containers were sealed and 16 people were booked in connection with the incident.

  • Weekly inflation jumps over 46% as wheat flour prices reach all-time high in Pakistan

    Weekly inflation jumps over 46% as wheat flour prices reach all-time high in Pakistan

    The price of wheat flour has hit an all-time high, and this has caused weekly inflation to surge by 1.80 per cent week-on-week and 46.65 per cent year-on-year.

    The Pakistan Bureau of Statistics has attributed this rise in the sensitive price indicator to the increase in prices of several items, including wheat flour, tomatoes, potatoes, and bananas, among others. On the other hand, the PBS has noted a decrease in the prices of chicken, chilli powder, and LPG, among others.

    The increase in the price of wheat flour is due to the government’s change in subsidy mechanism, shifting from general subsidy to a targeted subsidy through the Benazir Income Support Programme. This change has led to a 42 per cent increase in the price of a 20kg bag of wheat flour, which has now reached an all-time high of Rs2,586. As we head into Ramadan, food prices are expected to continue rising, and the March 2023 CPI is expected to come in at 35.5 per cent on a YoY basis.

    Sticky inflation numbers, along with the stalled International Monetary Fund programme, have pushed the State Bank of Pakistan to raise its benchmark interest rate by 300 basis points to a 26-year high. The central bank is expected to raise the policy rate by another 100bps to 21 per cent in its upcoming monetary policy committee meeting on April 4. This rate hike is expected to spread massive poverty among the population.