Pakistan Construction Industry Report 2025 | Output Set for 4.6% Average Growth from 2026 to 2029 with Strategic Initiatives - ResearchAndMarkets.com

The "Pakistan Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H1 2025)" report has been added to ResearchAndMarkets.com's offering.

Construction industry in Pakistan will shrink by 2.8% in real terms in 2025, owing to headwinds such as high inflation, a heavy debt burden, a widening current account deficit, depreciation of the local currency - Pakistani Rupee (PKR), rising construction material prices, elevated energy costs, restrained development spending, and political instability.

In March 2025, the Chairman of the Association of Builders and Developers (ABAD) reported that rising costs of construction materials, along with high taxation, have slowed down construction activity in the country; this is therefore pushing investors toward foreign markets and shrinking large-scale employment opportunities. Reflecting the current challenges, the construction industry's value-add fell by 9.1% year-on-year (YoY) in the first quarter of 2025, according to the Pakistan Bureau of Statistics (PBS).

However, the industry is expected to rebound at an average annual growth rate of 4.6% from 2026 to 2029, supported by investments in infrastructure, energy, education, and housing infrastructure projects. In May 2025, Pakistan's Central Development Working Party (CDWP), chaired by Federal Minister for Planning Professor Ahsan Iqbal, approved PKR143 billion ($482.1 million) for 10 development projects, with five projects worth PKR15.9 billion ($53.6 million) directly approved and another five major projects totaling PKR127.1 billion ($428.5 million) referred to the Executive Committee of the National Economic Council (ECNEC) for final approval.

The approved projects focus on education, technology, environment, infrastructure, and health. Key initiatives include: PKR1.6 billion ($5.4 million) for the construction of new academic blocks at the National University of Pakistan in Islamabad; PKR27 billion ($91 million) for the Chief Minister Punjab Laptop Program; and PKR2.5 billion ($8.3 million) for establishing an IT Industrial Innovation Center at Islamia College University, Peshawar.

Scope

• Historical (2020-2024) and forecast (2025-2029) 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

Key Topics Covered:

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Latest news and developments

4 Project analytics

5 Construction Market Data

6 Risk Profile

7 Appendix

For more information about this report visit https://www.researchandmarkets.com/r/txtbw0

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