The local construction industry – currently overburdened by the increasing inflation and soaring prices of construction material – needs special incentives for survival and sustainable economic growth.

Coordinator to the Federal Tax Ombudsman Meher Kashif Younis said this while talking to a delegation of builders and developers led by Afaq Shoukat Mokal Kasuri, said a press statement received by WealthPK.

Meher Kashif said the development of the construction industry was a prerequisite for achieving sustainable economic growth and survival of the industry.

He said the construction sector contributed Rs1,231 billion during the Fiscal Year 2021 and the next year it went up to Rs1,409 billion, adding that by the start of the current fiscal year, there was a significant growth of about 7 percent year on year basis.

Besides, the construction sector absorbs about 7.61 percent of the total labour force and it’s pertinent to mention that being the 5th most populous country in the world, the total strength of the labour force in Pakistan is around 69 million, he observed.

The coordinator to the Federal Tax Ombudsman said more demand for the housing units and allied infrastructure was emerging in the wake of a growing population at the rate of 2.4 percent.

He said new mega projects under the CPEC needed the government’s special attention to help the construction industry in their timely completion.

Meher Kashif said the growth of Pakistan's construction industry was well in line with the global industry that’s expected to reach US$15.2 trillion in 2022. The construction industry plays a major role in contributing to the gross domestic profit which is likely to touch the figure of 14.08 percent in the current fiscal year from 14.3 percent last year.

He said the construction industry was a fast-growing sector in Pakistan needing prompt full support of the government to reap the desired results from future mega projects.

Digital transformation in construction is picking up and will play a critical role in solving sustainability and other persistent challenges in the industry, he said.

Meher Kashif urged the government to give concessions on import of ultra-modern construction machinery for an early execution of mega projects besides special relief in local taxation and exemption to boost this industry.

Credit : Independent News Pakistan-WealthPk