Pakistani Construction Industry Faces Struggles as Inflation Takes Toll on Workers

Pakistani Construction Industry Faces Struggles as Inflation Takes Toll on Workers

Builders Association Reports Halting of 50% Construction Projects and Rising Unemployment in Pakistan

Islamabad, July 16, 2023 – The construction industry in Pakistan is grappling with significant challenges as soaring inflation continues to impact workers and businesses alike. The Builders Association has revealed that nearly 50 percent of construction projects in the country have come to a halt due to the escalating costs of doing business, leading to widespread unemployment among the estimated 25 million workers associated with the industry.

The construction sector, which has long been considered a crucial driver of economic growth and employment in Pakistan, is now facing an uphill battle. Inflationary pressures, marked by rising material costs and other operational expenses, have dealt a severe blow to both small and large-scale construction projects.

“The current state of the industry is deeply concerning,” says the Builders Association spokesperson. “The high costs of doing business, primarily driven by inflation, have forced many construction projects to be put on hold indefinitely. As a result, around 10 million workers directly linked to the construction sector are now grappling with unemployment and uncertainty.”

The skyrocketing prices of construction materials, including cement, steel, and wood, have significantly contributed to the financial strain experienced by builders and contractors. The sharp increase in costs has made it increasingly difficult for ongoing projects to stay afloat, leading to a decline in new construction ventures across the country.

The Pakistani construction industry finds itself grappling with significant challenges due to the adverse impact of inflation on its workforce. Inflationary pressures have resulted in a surge in the cost of living, making it increasingly difficult for construction workers to meet their basic needs and maintain a decent standard of living. The rising prices of essential commodities, such as food, housing, and transportation, have exacerbated financial hardships for laborers and their families, leading to a strain on the industry’s productivity and overall growth. With the construction sector being a vital contributor to the nation’s economy, these struggles can have far-reaching consequences, affecting the pace of infrastructure development and investment opportunities. Policymakers and industry stakeholders must address these issues urgently, by implementing measures to alleviate the impact of inflation on workers, ensuring sustainable growth, and fostering a conducive environment for the industry to thrive despite the prevailing economic challenges.

The repercussions of this crisis are far-reaching, affecting not only workers and businesses but also the broader economy. The halt in construction projects has resulted in reduced economic activity, decreased investment opportunities, and a slowdown in the housing sector, further exacerbating the challenges faced by the industry.

Workers, who rely heavily on employment within the construction sector to support their families, are particularly feeling the pinch. “How will we earn?” laments a construction worker, reflecting the concerns shared by many in the industry. “With projects halted and no new opportunities, the future looks bleak for us and our families.”

Recognizing the gravity of the situation, industry stakeholders and government authorities are urged to take immediate action to address the pressing issues faced by the construction sector. Efforts to curb inflation, provide financial relief to builders, and encourage new investments are necessary steps to revive the industry and protect the livelihoods of millions of workers.

In conclusion, as the construction industry in Pakistan grapples with the crippling effects of inflation, the sector’s workforce faces the harsh realities of unemployment and financial strain. Urgent measures are required to stabilize the industry, support ongoing projects, and restore opportunities for the millions of workers who rely on the construction sector for their livelihoods.


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