BMI's Executive Summary

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Pakistan's construction industry grew by 16.82% year-on year (y-o-y) in 2006, driven primarily by increased state-spending on infrastructure development –specifically road construction and powergeneration projects – and reconstruction work in the quake-affected areas. BMI forecasts the industry to grow at 9.27% y-o-y during 2008-2012.

The government has announced a number of road and highway development projects across the country. The third deep-sea port at Gwadar, developed in collaboration with China was inaugurated in March 2007. Major projects planned in the country include the US$43bn Model city on the islands of Bundal and Buddo near Karachi; the US$7.42bn gas pipeline from Iran to Pakistan and India; the US$6.5bn Diamer-Bhasha dam, and the US$4-5bn oil refinery in Baluchistan.

Despite having extremely liberal investment laws –100% foreign equity is permitted in the manufacturing and infrastructure sectors – the country has not managed to attract much foreign investment. Prolonged political unrest and disputes with neighbouring India have had an adverse bearing on the country's business environment. High corruption levels and lack of a sound legal infrastructure exacerbate the situation further. The Pakistani economy – despite being among the largest in South Asia – has to bear with widening trade deficits and mounting inflationary pressures. Within infrastructure development, residential construction has been one of the most neglected areas.

Despite all odds, the Pakistani construction sector has displayed impressive growth. BMI expects the growth to slowdown slightly from 2007 and average around 9% up to 2012. The industry is forecast to be worth PKR420.33bn (US$6.04bn) in 2012. Against the backdrop of a sizeable grey economy and underreporting, the industry's contribution to the overall gross domestic product (GDP) is likely to average 2.52% during the forecast period.

Chapter 1 - Executive Summary

Industry Trends And Developments

Market Overview

Pakistan’s Economy In 2005-2006

Pakistan’s Construction Industry In 2005-2006

Major Companies

Some Recent Investment Initiatives

Chapter 2 - Key Projects

Quake Aftermath

Transport

Utilities

Residential And Commercial Construction

Table: Pakistan Major Infrastructure Projects

Chapter 3 - Business Environment Rankings

Introduction

Table: Asia Business Environment Rankings

Business Environment Rankings – Methodology

Regional Overview

Pakistan: Business Environment Ranking

Economics – Long-Term Risk

Politics – Long-Term Risk

Construction Growth

Competitive Environment

Anticipated Potential

Chapter 4 - SWOT Analysis

Pakistan Infrastructure SWOT

Pakistan Economic SWOT

Pakistan Political SWOT

Pakistan Business Environment SWOT

Chapter 5 - Industry Forecast Scenario

Table: Pakistan – Construction Industry Historical Data And Forecasts

Risks

Chapter 6 - Macroeconomic Outlook

Mild Slowdown Ahead

Table: GDP And Population

Chapter 7 - Country Snapshot: Pakistan Demographic Data

Section 1: Population

Table: Demographic Indicators (2005)

Table: Rural/Urban Breakdown

Section 2: Education & Healthcare

Table: Education

Table: Healthcare – Vital Statistics

Table: Healthcare – Expenditure

Section 3: Labour Market And Spending Power

Table: Employment Indicators

Table: Consumption And Stratification

Table: Wages Per Year

Chapter 8 - Competitive Landscape

Table: Pakistan – Key Market Players

Chapter 9 - Company Monitor

Gammon Pakistan

ABB Pakistan

National Construction

Chapter 10 - BMI Forecast Modelling

How We Generate Our Industry Forecasts

Construction Industry

Sources

Chapter 11 - Appendix: Regional Demographic Data

Table: Manufacturing Wages (ave per annum), US$

Table: Population

Table: Household Spending Per Capita, US$

Table: Private Consumption Per Capita, US$ PPP

Table: Market Size, US$bn

Competitive Landscape for Asia Infrastructure Reports: Sample of Companies Ranked

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Comparative company analyses and rankings by sales, % market share, employees, registration date and ownership structure. Company profiles include fully researched senior executives and contact details, business activity and leading products and services. SWOT (strengths, weaknesses, opportunities, threats) of the state’s business environment, infrastructure sector, politics and economics, which carefully evaluates the short- and medium-term issues facing the industry.

Network of Asian Infrastructure Sources

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BMI's Asian Infrastructure Reports are based on an extensive network of multilateral organisations, government departments, infrastructure industry associations, chambers of commerce and company reports. Information sources include: