KARACHI, Feb 14: Builders and contractors have decided to defer their decision of suspending cement purchase from February 15-22 till the outcome of the Feb 20 meeting between contractors, builders and cement makers on the price issue.

However, contractors and builders are firm on their stand that they will not purchase cement at Rs260 per 50 kg bag, but will buy cement if available at reduced rates so that on-going projects do not suffer delays.

These stakeholders had jointly announced on Monday to stop buying cement for one week to protest against the price-hike made by the manufacturers.

“We will do normal buying of cement till the outcome of the meeting, if the commodity is available at reduced rates in the market,” chairman, Association of Builders and Developers (ABAD), Hafizur Rahman Butt, said.

“I have informed my members to continue buying cement below Rs260 till the government comes up with a decision on Feb 20,” he added.

He said that the cement makers had tried to play a ‘game’ which was aimed at pushing up rates artificially, but unfortu-nately their negative aims turned against them.

He said that the builders and contractors would not sit quiet on the cement price issue till a reasonable price is fixed. He said that stakeholders’ continuous hue and cry had virtually forced the government to act immediately on the cement price.

The ABAD, he said, would not set any condition in the upcoming meeting regarding a particular fixing of price. The cement makers should come out with a price which can be affordable to all stakeholders and consumers, he added.

However, in his opinion, cement price should not exceed Rs200 per 50 kg bag. In case the meeting fails to resolve the price issue, contractors and builders would decide their future course of action and ask the government to allow duty-free import of cement, Hafiz said.

Cement enjoys 20pc share in total cost of a house (ground-plus-one) while its share ranges between 23 and 24pc of total cost of a four-storey apartment project. For above six storey flats, the share of cement in total cost comes to 28-30 per cent, he said.

Chairman, All-Pakistan Contractors Association (Apca), Eng Ahmed Ghazal Usmani, also endorsed the viewpoint of the ABAD chairman and said contractors would definitely not buy cement at Rs260 at any cost.

There are very few stockists and retailers who are now offering Rs220-225 for a 50 kg bag because of the old stocks lying with them. Many contractors are buying cement at reduced rates from them, he said, adding cement in the market is available at Rs250-260 and at Rs260 in Punjab.

“Cement prices should range between Rs210-220,” he said, adding the actual cost of production of cement, made at a coal-based plant comes to Rs140 per 50 kg, including taxes and duties, and on fuel oil-based plants, it comes to Rs150 per bag.