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Pakistan Construction Market Size, Trends, and Forecasts by Sector – Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H1 2025)

Publisher GlobalData
Published Jun 13, 2025
SKU # GBDT20187087

Description

Pakistan Construction Market Size, Trends, and Forecasts by Sector – Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H1 2025)

Summary

GlobalData estimates the 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.

GlobalData’s Construction in Pakistan – Country Briefing (H1 2025) report provides detailed market analysis, information, and insights into the Pakistani construction industry, including -
  • The Pakistani construction industry's growth prospects by market, project type and construction activity
  • Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Pakistani construction industry
  • Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline
Scope

This report provides a comprehensive analysis of the construction industry in Pakistan. It provides -
  • 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 GlobalData's critical and actionable insight
  • Assess business risks, including cost, regulatory and competitive pressures
  • Evaluate competitive risk and success factors

Table of Contents

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
7.1 Definitions
7.2 CRI Methodology
7.3 About GlobalData
8 Contact Us
List of Tables
Table 1: Construction Industry Key Data
Table 2: Pakistan, Top Construction Projects by Value
Table 3: Pakistan, Construction Output Value (Real, $ Million)
Table 4: Pakistan, Construction Output Value (Nominal, PKR Billion)
Table 5: GlobalData Construction Market Definitions
Table 6: Risk Dimensions
Table 7: Ratings, Scores and Definitions
List of Figures
Figure 1: Pakistan, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2020–29
Figure 2: Pakistan, Construction Output Value, by Sector (Real, $ Million), 2019–28
Figure 3: South Asia, Construction Output (Real % Change), 2023–29
Figure 4: Pakistan, Construction Output by Sector (Real % Change), 2023–25 and 2026–29
Figure 5: Pakistan, Construction Value-Add, Constant Basic Prices of 2015-16, In PKR Million
Figure 6: Pakistan, Real Estate Value-Add, Constant Basic Prices of 2015-16, In PKR Million
Figure 7: Pakistan, CPI (Urban) Index for Construction Input Items (2015-16=100)
Figure 8: Pakistan, Construction Projects Pipeline, Value by Stage ($ Million)
Figure 9: Pakistan, Risk Summary
Figure 10: Pakistan, Risk Regional Comparison

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