LARGE-scale construction activities are flourishing across the country, particularly in big cities. New buildings with modern designs, houses, office complexes, shopping plazas, malls and quite a few sky-scrappers have cropped up or can be witnessed under construction in urban areas.
Construction is doubtlessly a very vital sector for any country’s economy. A large number of industries, some 30-40, are directly linked – rather are very much dependent for their own growth and expansion on construction activities.
The construction sector has seen many ups and downs over the years. Its share was as high as 4.2 per cent of GDP in late 60’s that has come down to 2.4 per cent now. Good news is that construction sector is picking up once again and, with a positive impact on a number of allied industries.
The potential of the sector is attracting increasing local and foreign investments. Yet, to make any difference, the focus should be on providing shelter to the majority of population. While have-nots suffer, rising rents and property prices in cities have also adversely affected the middle class.
Shortage of housing units is a pressing problem, According to 1998 census, the total number of housing units in the country stood at 19.3 million and the shortfall was 4.3 million. Every year 5,70,000 new housing units are needed to meet the needs of an increasing population while only 3,00,000 units are being built every year. So, the short-fall increases by 2,70,000 units every year.
The new investments being made both by local and foreign investors in construction sector are limited mainly to lager shopping complexes, sky-scrappers and luxury housing – needs of the elite only.
While this investment does nothing to cater to the needs of a majority of the population, it is, rather, having more devastating effects on them. One view is that rising investments have increased the prices of real estate – and with it have gone up the rents.
The element of speculation is raising construction costs, making house-building unaffordable for the common man. A lot of money is being pumped into construction business without any proper planning and comprehensive programme. It seems that those at the helm of affairs are quite happy with the rising concrete buildings – without a realistic assessment of what impact these are making on the common man.
Obviously enough housing units should be built every year to fulfil the short-fall that persists. This remains a missing dimension in Pakistan’s booming construction sector’s planning, if there is any at all.
The investors should be encouraged and provided incentives to put their money in low cost housing projects. Besides, the role of institutions providing housing finance should also be strengthened. All out efforts are needed to provide the public with this basic human necessity.