Construction is one of the preliminary industries developed by mankind and has continued to form the lives of millions in unique ways. Almost every other business depends on the construction industry for its accommodation, plants, and infrastructure. The construction industry has great economic relevance for Pakistan. It contributes about 2.5 per cent to the total GDP and employs 7.6 per cent of the Pakistani labour force.
The construction sector is estimated to grow by 92 per cent in seven years, from Rs1409 billion in FY2021 to Rs2706 billion by FY2029, at an annual rate of 11.8 per cent, mainly due to infrastructure and housing projects. With an annual growth of 14.4%, the sector is a stimulant to over 42 ancillary sectors, including steel, cement, bricks, aluminium, cables, fixtures, glass, kitchen and bathroom fittings, marble, and paint, ceramic tiles, transportation, warehousing, and wood.
Pakistan is the fifth most populous country globally, with a population of 220 million and a 60 million-strong labour force. With the growing population, the demand for housing is constantly increasing in Pakistan at an annual rate of 2.4 per cent. Keeping an eye on the growing housing need, the federal government has allocated Rs24 billion to the housing and works division and approved subsidies on markups of housing loans under the Mera Pakistan Mera Ghar scheme. Such relief packages and subsidies are pushing for further growth in the industry.
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