Empty packages.

THE real impact of Prime Minister Imran Khan`s economic package for the construction industry declared as the largest-ever support to the sector is yet to unfold. Announced in early April, the government has branded the package as a response to mitigate the socioeconomic impact of the pandemic on Pakistan`s economy and job market.

The package includes upgradation of the construction sector as an industry, massive tax relief in terms of duty waivers on materials used, withdrawal of capital gains tax, a Rs30 billion subsidy for investment in the Naya Pakistan Housing Scheme, and exemption of the condition of declaration of source of income for investors.

The sector was the first to reopen following nationwide lockdowns. The prime minister argued that besides its role in employment generation, the industry has backward and forward linkages and would benefit allied sectors such as cement, iron steel, bricks and services.

Technically, the construction sector includes both civil engineering and infrastructure projects in the public and private sectors. Globally, it is recognised as an important, fast-growing industry. However, the general understanding of the construction sector within the government`s package is that of housing and real estate, that too mainly in the private sector.

Housing and real estate is a major contributor to Pakistan`s economy as it contributes significantly to its GDP. Statistics suggest an annual demand of 350,000 housing units against a supply of 150,000 units, with a shortage of 200,000 units annually. The demand includes 65 per cent for low-income, 25pc for middle-income and 10pc for highincome groups.

The industry is likely to benefit from the package and increase demand for skilled and unskilled labour. According to the latest Labour Force Survey, the sector employs 7.6pc of Pakistan`s 65.5 million-strong labour force. It is the third largest employer following agriculture and manufacturing.

However, even while the government links the boost to the construction sector to employment generation, it makes no reference to the quality of the said employment.

The construction industry sources cheap labour from all corners of the country, characterised by young, poor, unskilled workers, the majority of whom are non-literate and vulnerable to exploitation.

Labour in the lowest tier of the industry, the brick kilns, are among the most marginalised. Multiple studies suggest that the majority of workers in over 20,000 brick...