Muhammad Saleem

People from the construction sector and other walks of life hope that the Punjab government housing scheme will help revive the construction sector and boost business activities in the other sectors. Talking to WealthPK about the potential impact of the housing scheme on the construction sector, Javed Kamal, an architect, told WealthPK that the construction sector had been facing a crisis for a couple of months. However, it could be safely concluded that the upcoming housing scheme had the potential to reinvigorate the construction industry. “Without careful planning and collaboration among the stakeholders, the project would fail. Without stimulating the construction sector, jobs could not be ensured for the countless unskilled workers.

The illiterate labour attached to the construction sector has no skills beyond loading and unloading materials,” he said. “The construction industry also supports businesses in multiple sectors, including cement, steel, wood, marble, hardware, paint, brick kilns and other segments. The scheme will also create jobs for skilled labor like masons, carpenters, painters, fitters, welders, electricians, and plumbers. All of them will be in high demand,” Javed said. He urged the government to devise a special strategy before launching the scheme so that the material prices remained under control. He warned that the opportunists might create shortage of materials like cement, sand and bricks soon after the launch of construction activities.

Allah Ditta, a contractor, shared with WealthPK that the construction sector would not be able to regain its lost strength without government assistance. He said people were reluctant to invest in new projects, fearing that heavy taxes could eat up their investment at any time. He said economic uncertainty was seriously impacting the construction sector. “I have no job for a couple of weeks. Even my old clients suggest that I should stay calm until things improve. I am trying to convince them to start investing, as the situation will improve, but to no avail,” he said.

Muhammad Ashraf from Government College University, Faisalabad, told WealthPK that the scheme had the potential to be a significant economic driver. He said the rulers launched construction schemes in the past primarily to generate jobs for the public; however, in the current circumstances when unbridled inflation was hitting every segment of the society, people not only needed jobs but also business opportunities.

He said the resumption of construction activities would lead to higher GDP growth. When the people attached to the construction industry start spending, the other sectors will also be stimulated. This scheme will create a ripple effect, ultimately benefiting the overall economy, he claimed. Asked how the government could ensure the long-term sustainability of the scheme, Ashraf suggested that the government must go for public-private partnerships. Through this approach, the government could also share the financial burden.

Credit: INP-WealthPk