Bagmati Construction Federation Demands 'Construction Emergency' Amid Price Hikes

Kathmandu. The Bagmati Province Construction Entrepreneurs Federation has demanded the declaration of a 'construction emergency,' stating that the construction industry is on the verge of collapse due to the excessive rise in fuel and construction material prices.

In a press release, the federation stated that the unexpected surge in prices of diesel, petrol, kerosene, bitumen, cement, and steel—driven by the ongoing conflict in the Middle East—has made it impossible to continue construction work. The federation believes the industry is facing a crisis due to market shortages and inflation.

The statement reads, 'The Nepal Rastra Bank's price index fails to capture the actual market inflation, placing a heavy financial burden on entrepreneurs.'

Entrepreneurs have complained that the impractical practice of the Rastra Bank's index showing a price decrease despite market hikes has prevented necessary price adjustments.

The federation has strongly urged the provincial and federal governments to provide immediate relief to construction entrepreneurs, issue the 'Price Adjustment Guideline-2' immediately, and implement price adjustment provisions for all contract periods.

The federation has also warned that if these demands are not addressed, construction work will come to a complete standstill.