ABAD says concerned at policy rate hike

The Association of Builders and Developers of Pakistan (ABAD) has criticised the State Bank of Pakistan’s policy-rate increase to 12 percent, saying it adds to pressure on construction businesses. ABAD Chairman Muhammad Hanif Gohar called for the central bank to reverse the move and lower borrowing costs, arguing that the increase could weigh on the broader economy and employment.

Gohar said costlier financing could push up project expenses and weaken investment, while making it harder for developers to start new projects. He also warned that price increases for cement, steel and other construction inputs could raise the cost of homes and other structures for ordinary buyers. The comments highlight the construction sector’s exposure to interest-rate changes and their effect on building activity.