The analyst expects Pakistan’s construction industry’s growth to decelerate to 5% in real terms in 2026, following annual growth of 14.3% in 2025. The slowdown in the construction industry in 2026 is attributed to elevated raw material and energy costs, budget cuts to reduce the fiscal deficit amid rising geopolitical instability, and global supply chain disruptions. In April 2026, the Pakistan Ministry of Finance announced a reduction of PKR173 billion ($587.4 million) in the Public Sector Development Programme (PSDP), bringing the total budget down to PKR837 billion ($2.8 billion), to pay for fuel subsidies. This reduction occurred in two phases: an initial PKR100 billion ($339.6 million) reduction in March 2026, followed by a PKR73 billion ($247.9 million) cut in April 2026.
Over the remainder of the forecast period, Pakistan’s construction industry is expected to register average annual growth of 4.8% between 2027 and 2030, supported by investments in transport and housing infrastructure projects, as well as developments in the energy and education sectors. The National Electric Vehicle Policy (NEVP) 2025-30, launched in June 2025, aims for electric vehicles to make up 30% of total vehicle sales by 2030, with a long-term target of 90% by 2040 and 100% by 2060.
Over the remainder of the forecast period, Pakistan’s construction industry is expected to register average annual growth of 4.8% between 2027 and 2030, supported by investments in transport and housing infrastructure projects, as well as developments in the energy and education sectors. The National Electric Vehicle Policy (NEVP) 2025-30, launched in June 2025, aims for electric vehicles to make up 30% of total vehicle sales by 2030, with a long-term target of 90% by 2040 and 100% by 2060.
The Construction in Pakistan - Country Briefing (H1 2026) 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 (2021-2025) and forecast (2026-2030) 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
- Industry Insights: Smart Packaging
- Overview
- Consumer context
- Industry and innovation context
- Takeaways
- Appendix
