Revival of construction sector crucial for economic growth, say experts

LAHORE: The construction industry, often referred to as the backbone of the economy, is crucial for boosting employment, driving economic growth and attracting investment.

This was highlighted by President of the Pakistan China Joint Chamber of Commerce and Industry (PCJCCI) Nazir Hussain during a think tank session at the PCJCCI Secretariat that this critical sector influences 72 interconnected industries, which are essential for driving economic growth, creating employment opportunities and attracting significant investments.

With the potential to unlock $100 billion in investments and create millions of jobs, the revival of the construction industry is vital for economic recovery.

The revival of Pakistan’s construction industry is not just a sectorial priority; it is a national imperative, he said. Its growth will reduce unemployment, boost industrial output, and improve the quality of life for millions of Pakistanis. Policymakers, industry leaders and stakeholders must collaborate to advocate for reforms that will rejuvenate this critical sector and capitalise on the opportunities presented by the China-Pakistan Economic Corridor (CPEC). Together, these efforts can ensure a robust and sustainable economic future for Pakistan.

Hussain stressed that supportive government policies will be crucial in unlocking the full potential of the construction industry. Tax reductions, affordable mortgage schemes and streamlined regulatory processes are essential for creating a growth-friendly environment. By addressing sectorial barriers, the government can pave the way for increased investment and industrial development.

These measures, alongside CPEC’s infrastructure projects, will lay the foundation for sustainable progress. Senior Vice President of the PCJCCI Mansoor Saeed Sheikh noted that the China-Pakistan Economic Corridor (CPEC) offers an unparalleled opportunity to rejuvenate the construction industry and boost the nation’s economy.

As a flagship project of the Belt and Road Initiative, CPEC has been a driving force behind infrastructure development in Pakistan. From roads and bridges to industrial zones and housing projects, the partnership between CPEC and the construction industry promises to accelerate growth, attract foreign direct investment (FDI) and introduce advanced technologies. CPEC’s focus on enhancing regional connectivity will boost trade and commerce, creating a ripple effect across multiple sectors.

Vice President of the PCJCCI Zafar Iqbal said that the resurgence of the construction sector will have far-reaching effects, invigorating a wide range of industries, including cement, steel, ceramics, real estate and IT solutions. Core construction materials, energy providers, interior finishing and smart technologies are just a few examples of the 72 interconnected industries poised to thrive alongside a revitalized construction sector. This interconnected network will generate a multiplier effect, strengthening Pakistan’s economic foundation and ensuring long-term resilience.