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Overview of Pakistan Construction Market
Pakistan remains an emerging market, with all of the risks and opportunities inherent to completing ambitious construction projects present. To make Pakistan more attractive for development, the Federal government implemented various reforms. These included eliminating bureaucratic hurdles and streamlining tax systems.
Short Term Goal Horizontal Long Term Aim
Hill International, Inc. anticipates growth primarily through vertical construction in Pakistan in the short-term. Hill Country Manager Syeda Fakhar-Un-Nisa believes it will stem from commercial and residential projects; growth may first appear through high-rises with supporting transit systems or urban infrastructure plans for those projects being undertaken simultaneously with any vertical undertakings. Syeda has been with Hill since they started working there in Pakistan; she helped manage Eighteen Islamabad (Elite Reverie), an 18 million dollar mixed use development there.
Aibk notes the activity seen across Pakistan as proof that vertical development is flourishing, including Lahore where Development Authority approved 121 buildings to meet population needs and where Lahore Central Business District Development Authority proposed “Lahore Prime,” a mega high rise development near transportation services and other amenities.
Syeda gives another example
Chand Tara Island development in Gwadar, where the federal government plans to invest $10 billion with China Communications Construction Company. According to Syeda, “Chand Tara would create the first tax-free commercial zone in the country at this trade hub location and include investments of $5 billion for electricity generation and transmission infrastructure and $1 billion for water desalination plants.”
According to Sheena Makhija of the Punjab Housing Department, the provincial government of Punjab realizes that vertical choices give the ideal solutions to accommodate more homes on fewer pieces of land. As a result, the provincial government has simplified this process in order to facilitate the development of these projects.
Longer term, Syeda anticipates mega-horizontal projects will drive Pakistan’s development once residential and commercial construction have caught up with demand. Mega projects currently planned include the $7 billion, 1,700 km Main Line 1 rail alignment. So which would link Peshawar with Rawalpindi through Gujranwala Lahore Sahiwal Khanewal Bahawalpur Rahimyar Khan Rohri Nawabshah Hyderabad Karachi with upgraded facilities along. But its entire length – ending up at Karachi where upgrades to facilities related infrastructure along. So its entire route are planned to take place along its entire route en route en route. Heavy and light rail development megaprojects will determine much of Pakistan’s work ahead, she stated.