1. Construction Sector

2. Construction Sector Share
PSDP
% of GDP
% Share in Construction Sector
Total PSDP Allocation *
663.00
3.79%
Construction Sector 58.4%
387.19
2.21%
Infrastructure 71%
274.91
1.57%
15.71%
Social Development & 29%
112.29
0.64%
6.42%
Housing Sector Share
884.63
5.06%
50.55%
Commercial / Industrial Construction
478.18
2.73%
27.32%
Total
1,750.00
10%
100.00%

3. Industry Segments Housing (private and Projects ) 50.55%
Commercial Units / Projects
27.32%
Public Sector Social Infrastructure/ Offices and other Assets
6.42%
Physical Infrastructure
15.71%

4. Value Chain Labor Equipments Land Materials Marketing Companies
1.2 m skilled,
2.6 m unskilled, 0.03 m Machine operators
Value Chain
Sub Contractors
(25536)
Builders/ Constructors
(6384)
Planning/ Designing
(1534)
Home owners
Public sector organizations
(20 Main)
Equipments
Land
Materials
Aggregates
Allied Industries (40+)
Crushed Stone
Sand
Steel
Bricks
Wood
Sanitary fittings & wares
Cement
Elec fittings and wires
Paints
Others
Housing (private and Projects )
Foreign Market
Real Estate Agents
Marketing Companies
Direct Marketing
Commercial
Material Suppliers
Commercial Units / Projects
Domestic
Public Sector Social Infrastructure/ Offices and other Assets
Public Sector
Housing (private and Projects )

5. Key Issues Policy and Regulatory Environment
Obsolete Housing policy (2001)- weak enforcement
Land (identification, acquisitions, information systems, registrations, disposal) (Section 2)- Status poor
Housing Finance (mobilization, credit facility, legal framework, incentives) (Section 3)- Status poor
Construction Service Sector (incentive to builders, simplification of collection of taxes, duties on machinery imports & materials, Contracting procedure, Standardization of conditions of Contracts) (Section 4)-Status Fair
Planning ,Zoning and Building Regulations (Section 6) –Status Poor
Standardization of Building Components (Section 7.2.1)- Status Poor
Cost Effective Material (Mud Brick (Adobe) and Ferro Cement roofing) (Section 7.2.2) –Status Poor
Supporting Infrastructure development (Section 9)- Status Poor
Lack of clear vision and planning for the industry
Weak enforcement of PEC Guidelines
No Special incentive to Private Sector for low cost housing
Access to Finance
House mortgage services for 3-5 Marla houses not offered by commercial institution
Key Issues
Source : Stakeholders

6. Key Issues- Contd Business Development Services
HR: Shortage of Skilled/Certified work force
Specialized Construction Machinery Operators
Other Construction Trades (Masons, plumbers and Ind. electrician etc)
Inadequate supply of heavy machinery and equipment operators
Market Access
International labor and project markets
Technology
Lack of :
Standardization and quality assurance- Construction materials
Technological up gradation- steel, sanitary fittings, ceramic and others
Energy shortages-high cost of production
Research and Development
Non effective Research and development- Construction materials
Institutional Framework/Coordination
No dedicated/ empowered body for the construction industry to address Product Standardization, Skill Development, OHS, Quality Assessment and certification

7. Key Issues- Allied Industries
Cement (Falls under LSM therefore only issues have been highlighted)
Under capacity Utilization
High Cost of Operations
Limestone and Gypsum exported to India.
Wood
Local wood expensive as compared to imported (75%) and scarce availability
Lack of mechanization and product standardization
No policy for plantation of trees for wood industry
Sanitary fitting and Sanitary ware
Lack of Quality assurance
Lack of quality material
Inefficient heat furnace- losses up to 30%
General Issues
Unstable cost of raw materials- energy shortages-high cost of production
Research and development- low priority
Insufficient education and training

8. Development Interventions
Interventions (Priority wise)
Activities to be under taken 1
Establishment of Sector Development Council for reviewing and enforcement of Housing Policy (2001) and allied Regulations
Establishment of Construction Sector Development Council
Hiring of Housing Policy Consultant for Housing Policy Review / Formulation of Regulations
Conducting Stakeholders meeting to review Housing Policy
Conducting awareness Seminars / Conferences / Workshops of the Program
Operationalization of Construction Sector Development Council 2
Construction machinery and skill development Institute at Lahore and Karachi
Draft Outline / PC1 for Machinery & Skill Development Institute
Consultation with Stakeholders to seek partnerships / collaboration for institutes
Advocacy / Coordination with TTI's and VTI's for Establishment of Training Institutes
Conducting awareness Seminars / Conferences / Workshops for institution
Project implementation of Machinery and Skill Development Institute at Lahore & Karachi
Execution of Machinery and Skill Development Institute at Lahore & Karachi
Launching Training Programs

9. Development Interventions
Interventions (Priority wise)
Activities to be under taken 3
National Program “On Job Training (OJT)” of unskilled workers.
Consultative process for project with CAP
Establishment of PMU
Project initiation by CAP in association with PMU and finalization of TORs for training and selection
Identification of Potential Builders as per TORs
Program development
Placement of unskilled labor with potential Builders
Monitoring of “On Job Training” labors
OJT certificate by CAP and Builders
Formal Trade Certificate/Skill certificate by NAVTTC and subsidy to cover the cost for availing formal certification 4
Energy efficiency program for Ceramics and Sanitary Fittings Industry
Engaging Consultants for conducting Energy Efficiency Program for Ceramics & Sanitary Manufacturers
ToTs of Consultants
Program Announcement for SME Facilitation (Marketing, Advertisement, Awareness, Brochures)
Financial subsidy to SMEs for implementation of Energy Efficiency programs
Purchase Energy Efficiency training equipment
Program Management by SMEDA

10. Development Interventions
Interventions (Priority wise)
Activities to be under taken 5
Trade Certification/Registration support to Manpower Export Centre/Companies for certification and export of certified workforce.
Establishment of PMU
Identification and short listing of Manpower Companies
Process of Accreditation/Certification of Manpower Companies
Capacity Building of Technical Trade Instructors
Up gradation of Centers through Matching Grant
Delivery of training programs in all trades at upgraded centers 6
Establishment of Mortgage Finance Company
PCII / Feasibility Study for a Mortgage Finance Company (PPP Vs Public Sector)
Road show / Consultative process for collaboration with financial institutions
Shareholders of Mortgage Finance Company in PPP mode / public sector
Establishment of Mortgage Finance Company in Lahore / Karachi
Approval of subsidy for small / low cost houses
Subsidy in Markup Charges for Houses by Govt. through MFC

11. Development Interventions
Interventions (Priority wise)
Activities to be under taken 7
Establishment of Contributory Fund for Facilitation of the Contractors
Consultative process for determination of size and structure
Establishment of PMU for Contributory Fund/Draft agreement for fund with major stakeholders
Registration of Fund.
Contributory Fund share by Govt and CAP.
Approval of fund management and lending terms by the BOD
Operationalization of Assistance to Constructors

12. Pakistan Construction Sector Outlook
Current
GDP: US$ 17.5 B (10.0%)
Export: US$ 4.6 B
SMEs: 0.06 M
Jobs: 3.83 M
After 5 Years
GDP: US$ 37.2 B (14.4%)
Export : US $ 8.9 B
SMEs: 0.08 M
Jobs: 5.31 M
Establishment of Sector Development Council for reviewing and enforcement of Housing Policy (2001) and formulation of allied regulations
Source: Economic Survey , PEC, SBP, Labor Force Survey ,BEOE, NAVTTC

13. THANK YOU