With the construction material costs rising in Pakistan, construction has once again become a major sector contributing to the economy. It employs about 8% of the total labour force and facilitates several allied industries as well, including different types of concrete, cement, forms of clay, different types of bricks, steel, paint, fixtures etc.
The Current State of the Construction Industry
After a 3-year decline in the construction sector, the State Bank of Pakistan stated growth of 85% (about Rs. 355 billion) in construction and housing finance in the previous year.
This is due to the increase in development activities, caused largely because of the different packages (with reduced taxes) that have been introduced by the government for private companies to incentivize construction.
Furthermore, recent trends have also boosted demand; for instance, consumption of steel bars and cement has particularly increased in Karachi as old houses of 5 marla, 10 marla and 1 kanal are undergoing a complete renovation.
Construction Material Costs in Pakistan
The different price points of construction materials in Pakistan have also risen substantially due to the rupee devaluation against the dollar, higher fuel and energy costs, interest rates etc.
Graana.com, Pakistan’s smartest property portal, has compiled the latest range of construction material costs below. However, it is important to note that they may vary according to city, availability, brand, and any associated costs (like transportation charges, etc.).
|Construction Material||Unit||From (in PKR)||To (in PKR)|
|Iron Bar (Sarya)||per ton||105,000||120,000|
|Crush (Bajri, dumper rates)||CFT||50||55|
|Sand (dumper rates)||CFT||20||25|
|Sanitary Fittings (pipes)||RFT||30||45|
|Sanitary Fittings (bathroom set)||per piece||8,000||20,000|
|Sanitary Fittings (geyser)||per piece||15,000||25,000|
|Electric Fittings (cable)||R Meter||11||20|
|Electric Fittings (lights)||per piece||300||3,000|
|Electric Fittings (fans)||per piece||1,500||4,000|
|Electric Fittings (AC)||per piece||30,000||100,000|
|Main Gate||per piece||10,000||40,000|
|Doors (normal size)||per piece||4,500||30,000|
|Interior Wood works (with material)||SFT||700||800|
|Interior Wood works (without material)||SFT||125||175|
|Lasani Sheet (4″*8″)||per piece||1,400||1,500|
|Lamination Sheet (4″*8″)||per piece||2,100||2,200|
|Labour Grey Structure complete (w.o. material)||SFT||250||300|
|Labour complete turnkey (w.o. material)||SFT||400||500|
|Complete construction cost (with material)||SFT||1,800||4,000|
With several projects in progress, the downstream demand has also inflated, in addition to the construction material costs. Hence, there is cause for hope in the construction sector and its ancillary sectors.