Construction and housing to revive economic glory.

Byline: Syed Fazl-E-Haider

Efforts are being made by the government led by Prime Minister Imran Khan to revive the construction and real estate sector, as the country faces Covid-19 pandemic hitting economic growth. The China-Pakistan Economic Corridor (CPEC) involves construction of highways, railways and energy pipelines connecting western China with Pakistan and the Persian Gulf. The multi-billion dollar infrastructure projects planned under the CPEC are likely to generate tremendous construction activity. The development of road and rail links between Balochistan and Xinjiang, will give distinction to Gwadar port of becoming the gateway port for western China. Rail link will transfer goods to and from western China, changing it from a remote region into a station that will transfer goods and commodities worth billions of dollars every year.

A fully operational Gwadar port and establishment of port-related communications and links on regional level will bring China and Pakistan in the regional as well as global mainstream of geo-economics in near future.

The implementation of mega construction projects under $60 billion CPEC is giving an impetus for growth of cement and steel industry in Pakistan. Huge investment in infrastructure promises a brilliant growth of cement and steel industry of Pakistan. It will not be incorrect to contend that the CPEC project is going to be a game changer for cement and steel sectors. The rise in cumulative cement dispatches is solely attributable to rising export volumes as domestic demand has so far remained depressed. With a boost to construction activity under CPEC, the domestic cement demand will witness a sharp surge. The country's cement industry has the capacity to meet the rising demand of cement for infrastructure projects under CPEC plan.

Vital factors for activities

Cement is vital to construction activity. Presently, the total installed capacity of 28 cement plants is 17.312 million tons in Pakistan. The industry witnessed a steady growth rate of 8% until 1994. Before 1994, the country was facing shortage of cement that was met through imports. In 1999, the country's total production was estimated at 10.384 million tons. In the past three years the cement industry has been facing a crisis situation. With a share of Rs.40 billion per year in the GDP, the cement sector contributes Rs.15-20 billion per annum to the national exchequer. Pakistan offers great opportunity to capture regional markets...