Housing & Construction Sector is among the identified sectors by the Government of Pakistan as the driver of economical growth. A spurt in activity in this sector unleashes a chain reaction in other allied industries. It is also said that no less than 60 industries are linked to construction & housing sector.
There is annual shortfall of 450,000 housing units at present while the backlog of around 10 million units is in addition. The Government has issued a number of policy guidelines for launching low-cost housing schemes, facilitating the provision of land, remove bottlenecks and work under public-private partnership to construct housing units with all basic amenities.
The Government has undertaken a number of measures to give impetus to this Sector which has helped revive construction activities in the Country. Some of these include:
- Significant reduction in duties and taxes on import of building materials including steel & steel products, construction machinery / equipment & construction chemicals etc.
- Free Trade Agreement between Pakistan & China to acquire construction machinery & building materials at most economical rates
- Removing uncertainties from the real estate market by computerizing ownership documents
Huge investments are pouring in from international investors from China, Saudi Arabia, UAE, Turkey etc. The new government has launched "Naya Pakistan Housing Programme" aimed at building five (5) million low-cost and affordable housing units across the country. Also, there are numerous infrastructure development projects in progress in the Country that include a large number of industrial zones, flyovers, underpasses, highways, tunnels, roads including motorways etc. which have lead this industry to surpass its past status and glory.
Every big city of Pakistan solicits Mass Transit System. The roads, highways and motorways all over the Country, specifically from Gwadar to Central Asian Republic Countries is another sector for investment on BOT basis. The Government is looking forward for investors to build these on BOT, BLT, BOOT basis. Overseas Entrepreneurs have ideal opportunities to make joint ventures with Pakistani entrepreneurs to invest in these projects on turnkey basis for very lucrative returns.
Government plans to set up a Sector Development Company on the recommendations of the Furniture Strategy Working Group “SWOG” to boost furniture industry. At present, quality furniture is being produced mainly at Chiniot, Gujrat, Peshawar, Rawalpindi and Karachi. Pakistan has the potential to export US$1 billion worth of furniture annually in the international market. Pakistan’s furniture industry can be transformed from cottage to a modern industry through training, upgrading supplies and imports, setting up a woodworking institute including testing labs of international standards in Pakistan.
The land of Gwadar has its geographical importance, as after the development of the Port it will link the landlocked Central Asian Republics & Afghanistan with the rest of the world. It would also provide an alternate route to countries like China & Russia to directly access many Middle Eastern states. The Government has initiated a number of key projects in Gwadar which would open new vistas for the economic development of Balochistan as well as Pakistan. Operation of Gwadar Port has already been awarded to Singapore Port Authority for 40 years. Some of the important projects initiated by the Government in Balochistan include construction of New Gwadar Airport, Gwadar-Khuzdar-Ratodero Road, Saindak Copper / Gold Mine, Kutchi Canal, etc. while the Makran Coastal Highway, Gwadar Deep Sea Port & Mirani Dam have already been completed & commissioned.
Work on Sonmiani Beach, the 4th Port of Pakistan, Extension of Coastal Highway from Gwadar upto Iranian Border have been announced by the Government to be commenced in the near future. Entrepreneurs from all over the world have immense opportunity to invest in infrastructure, Seaport, Airport and other industrial projects in the region.
Pakistan, specifically Balochistan, is very rich in mineral wealth of various kinds of marble, onyx and granite. Low quantum of exports is mainly because of inexpensive primitive quarrying, finishing and polishing methods being generally adopted at present. Realizing its potential for exports, the Government has established a MARBLE CITY on 600 acres of land located at 7 kilometers from Hub on Hub-Gadani Road under Lasbela Industrial Estate Development Authority “LIEDA”. The 1 st phase of 300 acres has been sold out to 108 entrepreneurs. Infrastructure has been provided and factories over 70 plots are in advanced stage of construction. Overseas investors have a unique opportunity to form joint ventures with local entrepreneurs to install Hi-Fi Plants and Machineries at MARBLE CITY to produce quality tiles, slabs and blocks at par with international standards for exports of this highly potential commodity, in great demand globally. Pakistan has several rare species of marble & granite of unmatchable quality in abundant quantities. Presently, marble is being exported to USA, UK, Italy, China, Middle and Far Eastern Countries etc.
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