Housing and Construction Pakistan

Housing & Construction

Pakistan is the 5th most populous country in the world, with 220 million citizens, more than 60 million strong labor force and a growing middle class. Out of total population, 36.38% resides in urban areas whereas 63.62 lives in rural parts. There is a growing demand for houses due to a 2.4% annual population growth rate as per census 2017.
The country’s construction industry accounts for 2.53% of Gross Domestic Product (GDP) according to the Pakistan Economic Survey. The sector employs 7.61% of the employed Pakistani labour force.
GFCF in private sector grew by 20.6% between FY2019 and FY2020. Private sector GFCF amounted over 95% of the total.
China Pakistan Economic Corridor (CPEC) has given a boost to the construction sector through the influx of infrastructural projects including highways, power plants, and dams.

Reasons to Invest

Pakistan’s construction sector provides up to 380 billion PKR in GDP.According to the Association of Builders and Developers, pending cases pertaining to construction and housing add up to Rs. 1.1 trillion in monetary value. Fitch Solution projects an industry value of Rs.2,705.5 billion by 2028 representing the potential of the housing and construction industry.
Construction sector has been declared an industry. With this brings tax relief to firms in the industry through the amendments to the tax ordinance. Reforms to tax policies provide numerous incentives to builders and developers as well as contractors. These include lower tax rates and the removal of numerous taxes previously hampering the ease of doing business in the sector.

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