By Ayesha Saba
Pakistan’s construction industry stands at a crossroads — struggling with a deep housing crisis but also holding the power to rebuild the nation’s economic strength. Experts believe that smart reforms, faster approvals, and steady tax policies could turn this struggling sector into one of Pakistan’s biggest success stories.
ABAD Chairman Highlights Urgent Reforms for Growth
Mohammed Hassan Bakshi, Chairman of the Association of Builders and Developers of Pakistan (ABAD), shared these views in an exclusive conversation with this reporter.
He said the construction and real estate sector is under pressure from rising costs, a worsening housing shortage, and uncertain economic conditions. Yet, despite the challenges, the industry is full of potential for growth, innovation, and inclusive development if supported by the right policies.
Addressing Pakistan’s Growing Housing Crisis
Pointing to Pakistan’s housing shortage — now exceeding 10 million units — Bakshi said the crisis hits low- and middle-income families the hardest. It’s not just an economic problem, he added, but a social one that demands urgent government attention. He called on policymakers to treat housing as a national priority supported by clear and actionable reforms.
Importance of Long-Term Tax Policies for Construction
He stressed that long-term and predictable tax reforms are vital to attract investment. Frequent changes in tax policy, he explained, make it hard for investors to plan projects confidently and discourage both local and foreign participation in the market.
“Stable, construction-friendly tax reforms such as reduced duties on building materials and consistent fiscal policies can improve investor confidence, boost economic activity, and strengthen related industries,” Bakshi said.
One-Window System Could Streamline the Pakistan Construction Sector
He also emphasized the importance of introducing a one-window approval system to reduce bureaucracy and speed up development. According to him, overlapping procedures and multiple departmental clearances delay projects and increase costs. A single, transparent platform, he said, would simplify the process, cut red tape, and help the country achieve its housing and infrastructure goals faster.
Bakshi added that a construction-friendly tax environment is essential to attract long-term investment. High and inconsistent taxes, he said, create uncertainty and push investors away. Offering targeted tax incentives, lowering import duties on raw materials, and ensuring fiscal stability could make the sector more competitive and create jobs while improving the nation’s infrastructure.
Role of Public-Private Partnerships in Infrastructure Development
He also underlined the role of public-private partnerships (PPPs) in solving Pakistan’s infrastructure challenges. “The public sector alone cannot meet Pakistan’s growing infrastructure needs. PPPs allow private investors to bring in capital and expertise, while the government provides policy support, land, and guarantees,” he said.
Bakshi explained that well-planned PPPs could attract billions in investment and help modernize urban areas, creating stronger, more sustainable cities.
Strengthening Collaboration for National Development
Finally, he noted that Pakistan’s construction and real estate industry has the capacity to drive national progress, but achieving that potential requires consistency, sustainability, and collaboration between the government and private sector.
“With thoughtful reforms, inclusive planning, and modernization, this sector can become a major force of economic resilience — building not just homes, but a stronger, more prosperous Pakistan,” Bakshi said.
Author Profile
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Ayesha Saba is an economic journalist advocating for Pakistan's shift from unstable farming to high-value sectors.
Her sharp analysis of the central bank's report spotlights tourism and technology as vital engines for job creation and resilience, urging urgent policy pivots toward a **diverse and sustainable future.
