Pakistan: Building material costs to rise

While local Pakistani companies are anticipating a rise in building materials costs over the next year, their counterparts in Iran are already experiencing a hike of up to 30 per cent under the pressure of trade sanctions. Cement prices have increased by 20 to 30 per cent in Iran this year compared to the year before.

It's because of energy, transport and supply costs but most of all because of the sanctions. The suppliers are not selling at the same prices as before. The currency exchange rate has also made imports into Iran four times as expensive.

Pakistani companies are already seeing costs rise in European imports. Local companies could also see building material prices go up when projects start to pick up in the UAE. Maybe a 5 to 10 per cent increase.

Other companies involved in building materials are not so optimistic about the market because of funding problems.