The construction industry in Pakistan is becoming a hot topic lately, and there’s no reason it shouldn’t. Hundreds of real estate investments in Karachi, Lahore, and other cities were initiated and proved vital for the country’s economy. There are approximately 100+ different sectors that are aligned with the upscaling of the construction division. According to a report published by Brecorder: “With the rise of construction activities within a country, it creates a snowball effect for 120 different sectors.” Industries such as wood, tiles, steel, iron, and many others are directly affected by the upscaling or the destitute of the construction sector. Therefore, it’s essential to revive this particular sector for the massive, comprehensive growth of the economy. Overall, the construction market can be classified into three broader categories:
- Construction of buildings in residential and commercial areas.
- Civil engineering works include manufacturing dams, waterways, bridges, highways, etc.
- Specialized construction activities require skilled laborers who perform bricklaying, stone setting, roof covering, etc.
Why Nurturing The Economy is Necessary?Pakistan has seen the worst during Covid lockdowns. From inflation to unemployment, almost every sector has seen poor indicators of upcoming growth. For this reason, the need for investment injection is getting necessary for the economy. The best way to do it is the good old method of revivalism of the construction industry. According to CY17, Pakistan is the fifth most populous country globally, with a figure of 207 million. And it will astonishingly expand to 300 million by 2030. By looking at the numbers, one can predict the considerable potential of our construction industry. And alongside the population numbers, the construction sector also significantly contributes to our country’s GDP. Official statistics report that it contributes to 2.5-3%. But unofficially, on the ground, people say that the construction sector is responsible for adding 10-12% to the country’s GDP. Therefore, it’s crucial to discuss how we can improve our construction-centric economic sectors to influence our GDP growth positively. By doing this, we can upskill our 7.6% of the country’s labor and provide them with work opportunities to upscale themselves. Moreover, the need for more homes with an increase in population also laid the foundation for robust industrial sectors that will immensely and continuously benefit the country’s economy for 10, 15, and even 20 years.
What Can be Done to Improve The Construction Sector?The federal government has launched several programs and exemption schemes with the approval of FBR and provincial governments. By doing so, they get appreciation and criticism from both ends. One end said by referring to the examples of China and Brazil: “It’s a tried and test method and will kickstart the country’s economy.” – said Hadi Akberali, COO of Amreli Steels. While the critics conclude with their remarks that: “Asking permissions and approvals from local authorities is next to impossible.” – said former ABAD chairman and developer. Keeping this in mind, we’ll give our recommendations about improving the country’s economy under the construction industry using available and working models:
- Amnesty and tax exemptions can be beneficial if laid in correspondence with the big real estate players.
- Similarly, real estate projects like Bahria Town Karachi (after being given amnesty) will provide homes to locals at more subsidized prices.
- Creating open-trade policies with other countries will provide mutual benefits to both participants.
- The emphasis shouldn’t only be on highways and roads but on providing and creating better infrastructures for education sectors.
- Creating public sector projects like Dams, waterways, and highways will also be beneficial, considering Pakistan’s ranked no. 22nd concerning the size of the road network (270,000 kilometers).
How to Make Sustainable Construction Reforms?There’s been a lot to talk about the construction reforms and how they affect our current situation. But what’s more concerning is how we can sustain these reforms from the government to government. Because what we have seen in previous decades is that every new regime has subverted the changes made by the previous governments and made overall changes to them. That decision creates a sense of uncertainty and restlessness among investors and foreign stakeholders. You not only make them change their decisions every five years or so but also make them worried about what will happen next. Therefore, the need for obtaining and creating a sustainable path toward construction-led economic growth is necessary. That will create more investors and make them responsible for the changes asked of them in the future. Besides adding trust to investors, we also have to cater to our primary audience – people. Our main goals should be to empower them and create more opportunities for them. RAAS – Smart Property Solution can help individuals in finding their best properties in Bahria Town Karachi.
Conclusion:So far, the influx of real estate investments in Karachi, Quetta, and surrounding cities is mesmerizing. But improvements can be made, products can perform better, and documenting processes could be made even smoother.
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