Pakistan Construction Industry Report 2023: Challenges Mount for as a Further 5.2% Contraction Looms - Transport, Electricity, Housing, Telecoms, and Industrial Infrastructure Growth Forecast to 2027
Thursday, August 24, 2023
DUBLIN, Aug. 16, 2023 /PRNewswire/ -- The "Pakistan Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027" report has been added to ResearchAndMarkets.com's offering.
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The construction industry in Pakistan is bracing for a significant contraction of 5.2% in the current year, following a decline of 2.8% registered in 2022.
Persistent economic strains, political uncertainties, and financial instability within Pakistan have contributed to the projected decline in the construction sector this year.
The country's substantial current account deficit, coupled with high levels of public debt and diminished foreign exchange reserves, are anticipated to exert considerable pressure on the construction domain. Moreover, the economy's grappling with elevated inflation rates and soaring energy and construction material costs will further contribute to the dampened construction activity in the year.
In order to secure a $1.1 billion tranche of IMF funding before the expiry of the IMF's Extended Fund Facility on June 30, 2023, the Pakistani government has significantly tightened its FY2023 budget. The government has been forced to cut spending, increase its tax base and lift restrictions on imports, with the depletion of Pakistan's foreign exchange reserves increasing its reliance on IMF funds in order to prevent a default on its external debt.
Pakistan's economic woes have been further compounded by soaring rates of inflation, with annual consumer price inflation rising to 37.97% in May 2023. Pakistan's central bank continues to hike interest rates in response, raising its benchmark interest rate by 100 basis points to 22% in June 2023, and this will weigh on both public and private construction investment this year.
The industry's growth over the remaining part of the forecast period will be supported by investment in transport, electricity, housing, telecommunication, and industrial infrastructure projects. According to the Indicative Generation Capacity Exemption Plan (IGCEP) for 2022-31, finalized by the state-owned National Transmission & Despatch Company (NTDC), power demand in the country is estimated to rise from 26.9GW in FY2021/2022 to 44.7GW in FY2030/2021.
The rise in power demand is expected to attract public and private sector investments towards the electricity sector in the coming years. The government estimates that the country will require an investment of approximately PKR10.5 trillion ($55 billion) to increase the total installed power capacity from 41GW currently to 65GW by 2031.
In early November 2022, the World Bank approved financing of over PKR573.5 billion ($3 billion) to support infrastructure development in the energy sector.
Scope
-- Historical (2018-2022) and forecast (2023-2027) 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 the publisher's
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 strategy using the publisher'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/2vxjz3
Source: GlobalData
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