Workers hit hard by rising inflation

It has become almost impossible for the poor and daily wagers to make both ends meet already being hit by high inflation as thousands of skilled and unskilled workers have become deprived of their source of income because of slowdown of the construction industry.
After the 60 percent increase in steel prices, 26 percent in cement, 18 percent in petrol and 14 percent in diesel, most of the contractors across the country have stopped to carry on their respective projects. The unprecedented rise in the prices of steel, cement, petrol and diesel has hampered the growth of construction industry and contractors find it difficult to come to terms with it.
In Punjab, work on hundreds of development projects worth Rs 200 billion across the province remains suspended due to the deadlock between the government and the contractors, who are demanding readjustment of the costs of their contracts in the backdrop of increasing prices of construction materials. Saeed Rehmat Ali, a labourer, is facing acute financial problems because he does not have any work these days. "I used to earn Rs 350 daily but the contractor has stopped work on the project rendering me jobless", he laments.
People are amazed to know that important development projects have come to a sudden halt, or slowed down, including Faisal Avenue flyover, and yet to start Zero Point interchange. If the current deadlock between the government and the contractors continues, the fate of these development projects is anybody's guess. Ahmad Saeed is an engineer associated with a construction company in Islamabad. His company owners recently informed him that his services would be terminated in two months' time as the company has been forced to stop its activities.
Besides rising project costs, another aspect which irks the contractors is the clause in the contractors' agreement which bars the contractors to use only Pakistan Steel Mills manufactured billet. This condition has resulted in black-marketing of the commodity. Since Pakistan Steel Mills is unable to meet the growing demand, steel of the same specification or equivalent must be allowed to use, says a contractor.