Pakistan Construction Industry Report 2025: Output to Expand at an AAGR of 4.6% During 2026-2029 After an Expansion of 5.1% in 2025, Owing to an Improvement in Consumer and Investor Confidence

Key opportunities in Pakistan's construction sector include investments in infrastructure, transport, housing, and renewable energy. Key allocations, like the Public Sector Development Program and the National Electric Vehicle Policy, drive growth, presenting prospects in electricity projects, highway expansion, and hydropower.

Dublin, Feb. 23, 2026 (GLOBE NEWSWIRE) -- The "Pakistan Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H2 2025)" report has been added to ResearchAndMarkets.com's offering.

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.

Report Scope

• 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

Key Topics Covered:

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Latest news and developments

4 Project analytics

5 Construction Market Data

6 Risk Profile

7 Appendix

List of Tables
Table 1: Construction Industry Key Data
Table 2: Pakistan, Top Construction Projects by Value
Table 3: Pakistan, Construction Output Value (Real, $ Million)
Table 4: Pakistan, Construction Output Value (Nominal, PKR Billion)
Table 5: the analyst Construction Market Definitions
Table 6: Risk Dimensions
Table 7: Ratings, Scores and Definitions

List of Figures
Figure 1: Pakistan, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2020-29
Figure 2: Pakistan, Construction Output Value, by Sector (Real, $ Million), 2020-29
Figure 3: South Asia, Construction Output (Real % Change), 2023-29
Figure 4: Pakistan, Construction Output by Sector (Real % Change), 2023-25 and 2026-29
Figure 5: Pakistan, Construction Value Add, Constant Basic Prices of 2015-16, In PKR Million
Figure 6: Pakistan, Real Estate Value Add, Constant Basic Prices of 2015-16, In PKR Million
Figure 7: Pakistan, CPI (Urban) Index for Construction Input Items (2015-16=100)
Figure 8: Pakistan, CPI (Urban) Index for Construction Wage Rates (2015-16=100)
Figure 9: Pakistan, Construction Projects Pipeline, Value by Stage ($ Million)

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