Lahore: The rising production costs and decline in construction activities have forced 20% of brick kilns in Punjab to shut down, according to news published on April 4.
Read: APCMA reports 48% rise in cement imports, 24% drop in sales
The news source mentioned that the total number of brick kilns operating in Punjab is 7,332, which employs thousands of workers. Besides the closing of 20% of the brick kilns, the increasing production costs has brought these kilns on the verge of shutting down due to lack of sales and continuous losses. The cost of producing one million bricks has risen from PKR 7 million to PKR 12 million due to an increase in the cost of transportation, coal, and mud per tractor-trolley.
Read: Govt urged to prioritise steel sector’s LCs
As per the details, the prices of bricks have been at their lowest level in the last past five years and construction activities have decreased, mainly, because of the high cost of materials. Kiln Owners Association’s Secretary General Mehar Abdul Haq disclosed that the brick kiln owners are suffering a monthly loss of PKR 1.5 million. It is important to note that the flash floods in South Punjab last year damaged many brick kilns, which have not been revived yet.