The construction industry in Pakistan is estimated to have expanded by 5.1% in real terms in 2025, owing to an improvement in consumer and investor confidence. As a result, the country has seen rising investments in the manufacturing, transport and renewable energy sectors, a move that will help to drive economic development in the country. According to the Pakistan Bureau of Statistics (PBS), the construction industry’s value-add grew sharply by 17.6% in year-on-year (YoY) terms in Q2 2025, preceded by YoY growth rates of 10.7% in Q1 and 3.1% in Q4 2024. The analyst has revised its construction forecast upwards for 2025 from an estimated decline of 2.8% in September 2025 to a growth of 5.1% in December 2025.
Pakistan’s Finance Minister, Muhammad Aurangzeb, presented the federal budget for FY2025-26 in Parliament on June 10, 2025. Covering the period from July 2025 to June 2026, the budget sets current expenditure at PKR 16.3 trillion ($54.9 billion) and allocates PKR 1 trillion (US$3.5 billion) for the Public Sector Development Program (PSDP). Infrastructure is a key priority, with PKR 682.3 billion ($2.3 billion) earmarked under the PSDP for FY2025-26. Major allocations include PKR 15 billion ($50.6 million) to complete the missing link of the north-south motorway network connecting Sukkar and Hyderabad, PKR 13.7 billion ($46.2 million) for dualization of the DG Khan-DI Khan section of the N-55 Highway, and PKR 10.9 billion ($36.7 million) for the Dasu hydropower project.
The analyst expects the construction industry in Pakistan to expand by an average rate of 4.6% from 2026 to 2029, supported by investments in transport and housing infrastructure projects, as well as through developments in energy and education sectors. The government has also set an ambitious electrification agenda under the National Electric Vehicle Policy (NEVP) 2025-2030, launched in June 2025, aiming for electric vehicles to account for 30% of total vehicle sales by 2030. Over the longer term, the policy targets 90% EV sales by 2040 and 100% by 2060. The Ministry of Industries and Production (MoI&P) estimates the NEVP could reduce fuel costs by PKR283 billion ($1 billion) and cut emissions by 4.5 million tons. To support adoption, the policy calls for 40 new EV charging stations on motorways by 2030, spaced about 105 km apart on average. It also proposes battery-swapping systems, vehicle-to-grid schemes, and requires EV charging points to be incorporated into new buildings to accelerate uptake in urban areas.
Pakistan’s Finance Minister, Muhammad Aurangzeb, presented the federal budget for FY2025-26 in Parliament on June 10, 2025. Covering the period from July 2025 to June 2026, the budget sets current expenditure at PKR 16.3 trillion ($54.9 billion) and allocates PKR 1 trillion (US$3.5 billion) for the Public Sector Development Program (PSDP). Infrastructure is a key priority, with PKR 682.3 billion ($2.3 billion) earmarked under the PSDP for FY2025-26. Major allocations include PKR 15 billion ($50.6 million) to complete the missing link of the north-south motorway network connecting Sukkar and Hyderabad, PKR 13.7 billion ($46.2 million) for dualization of the DG Khan-DI Khan section of the N-55 Highway, and PKR 10.9 billion ($36.7 million) for the Dasu hydropower project.
The analyst expects the construction industry in Pakistan to expand by an average rate of 4.6% from 2026 to 2029, supported by investments in transport and housing infrastructure projects, as well as through developments in energy and education sectors. The government has also set an ambitious electrification agenda under the National Electric Vehicle Policy (NEVP) 2025-2030, launched in June 2025, aiming for electric vehicles to account for 30% of total vehicle sales by 2030. Over the longer term, the policy targets 90% EV sales by 2040 and 100% by 2060. The Ministry of Industries and Production (MoI&P) estimates the NEVP could reduce fuel costs by PKR283 billion ($1 billion) and cut emissions by 4.5 million tons. To support adoption, the policy calls for 40 new EV charging stations on motorways by 2030, spaced about 105 km apart on average. It also proposes battery-swapping systems, vehicle-to-grid schemes, and requires EV charging points to be incorporated into new buildings to accelerate uptake in urban areas.
The Construction in Pakistan - Country Briefing (H2 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.
Report 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 the analyst'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 Summary2 Construction Industry: At-a-Glance3 Latest news and developments4 Project analytics5 Construction Market Data6 Risk Profile
7 Appendix
List of Tables
List of Figures
