Pakistan Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2028 (H2 2024)

The Construction in Pakistan - Country Briefing (H2 2024) report provides detailed market analysis, information and insights into the Pakistani construction industry, including:

• The Pakistani construction industry's growth prospects by market, project type and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Pakistani construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline

The analyst estimates the construction industry in Pakistan to shrink by 4.4% in real terms in 2024, owing to rising government debt, political uncertainty, inconsistent economic policies, high inflation, and rising construction costs driven by higher prices of materials like cement, sand, and bricks. According to the State Bank of Pakistan (SBP), the central government’s total debt (domestic and external) surged by 2.1% during the first two months of the fiscal year (FY) 2024-25 (July to August 2024). The federal government’s total debt rose from PKR68.9 trillion ($227 billion) at the end of June 2024 to PKR70.4 trillion ($231.8 billion) at the end of August 2024. In September 2024, the Pakistani government announced a series of measures to minimize its administrative expenditures. Some of the measures include abolishing approximately 150,000 government posts, closing six ministries and merging two other ministries; these measures were announced as part of reforms agreed upon with the International Monetary Fund (IMF) under the PKR2.1 trillion ($7 billion) loan deal. Earlier that month, Pakistan's Ministry of Finance announced austerity measures to control expenditures; this includes a ban on the purchase of machinery and equipment, with an exception to those required for hospitals, laboratories, schools, and the agriculture and mining sectors.

In late September 2024, the IMF had approved a new PKR2.1 trillion ($7 billion) loan for Pakistan, which will be disbursed in installments over 37 months. However, the key assumptions used to finalize the package have gone haywire within a month of its approval, leaving the authorities concerned with an option to either renegotiate the package or keep suffocating the economy with more taxes. In mid-November 2024, the IMF held constructive talks with the Pakistani authorities on economic policy and reform efforts; the unusual visit came too early for the first review of the Extended Fund Facility (EFF), which was due in Q1 2025

Scope

This report provides a comprehensive analysis of the construction industry in Pakistan. It provides:

• Historical (2019-2023) and forecast (2024-2028) valuations of the construction industry in Pakistan, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
• Assess market growth potential at a micro-level with over 600 time-series data forecasts
• Understand the latest industry and market trends
• Formulate and validate business strategies using the analyst's critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors