The construction industry and machinery in Pakistan

The construction industry and machinery, Pakistan's largest industry, generates millions of Dollars.

Introduction

The construction sector and the construction industries of Pakistan are considered significant growth sources for Pakistan's GDP. Although the construction sector in other countries, even developed countries, faces some downfall, the construction and machinery industry is continually growing in Pakistan. This research paper will discuss how Pakistan's construction and machinery industry generates revenue and millions of dollars. However, we are in a pandemic situation.

Discussion

When we discuss these 2, we will discuss these separately; the Construction sector is different, and the machinery industry is another. They are believed to be two of Pakistan's giant factories. First, we will address Pakistan's building industry.

Pakistan's construction/building sector

As every nation thrives, Pakistan's building industry has produced remarkable results over the last two decades. In the past 20 years, the land prices have gone up, especially after the launch of the Bahria Town Karachi and Bahria town Lahore projects launched in 2012 and 2013. The construction industry thrived more when CPEC was announced in the fall of 2013. At first, people were reluctant, but later the project became beneficial for Pakistan's economy because even its name is China Pakistan Economic Corridor, which states that it will help both countries economies.

In July 2020, the government announced that it would support Pakistan's construction industry and encourage the builders to do more projects that would benefit the country's economy. The construction industry had shown growth in the past decade when many apartment constructions were announced. The government supported them. The media campaigns were also done to have these projects sold.  The building sector produces millions of dollars due to new ventures. In recent times, the new project is ARY laguna, built in partnership with DHA. The builders are earning millions of dollars., and the construction company has a hefty amount of profits.

The construction industry alone has made 344104 million from July 2019 till June 2020, the second-highest just to the agriculture industry. The diagrams on the following page show ARY laguna, Bahria Town, and CPEC construction sites.

The machinery industry of Pakistan

When discussing Pakistan's machinery industry, all of the machinery used in Pakistan would be considered. Moreover, due to the recent outbreak of Corona Virus (COVID-19), the demand for machinery in hospitals, such as ventilators, Lifesaving equipment, Lifesaving machines, etc., has also increased in the past year.

While the Manufacturing Sector of Pakistan also uses heavy machinery for manufacturing. Many firms in Karachi use machines to manufacture; these firms would include Textile mills, Steel Mills, Pharmaceutical companies, etc. These industries use different types of machines worth millions of dollars; that's why Pakistan's machine sector is also earning millions of dollars. Even the agricultural sector of Pakistan uses heavy machinery such as tractors, trolleys, hand pumps, etc. These machines also cost in lac; that's why Pakistan's machinery industry earns millions of dollars. This is one of Pakistan's top firms.

Many of the machines are exported from outside. In contrast, some of the machinery is manufactured in Pakistan, by which the GDP is affected. As when machines are imported, then the GDP is affected adversely. When the types of machinery are made in Pakistan and sold, the GDP is positively affected. In 2014 the import of machines increased in Pakistan. The prices of some of the popular machines are as follows:-

Type of machine

• Price (Million)
• Forklift RS: 5.6M
• Wheel loader 2M
• Excavator 19M
• Apex machine N/A

The above-stated machines in the table are used mostly in Pakistan, and as seen from the prices, they are quite expensive. The figures below show how complicated these machines are, and due to this reason, they are quite costly.

The construction and machinery Industry of Pakistan combined

Although Pakistan's construction sector has the 2nd highest impact on Pakistan's GDP, the machinery sector does not significantly affect it as most of the machines are imported from other countries. This does not, though, imply the machinery/equipment is inefficient. The industry accounts for 2.5% of the GDP in the country. The country's construction sector is at its peak as several builders are investing in construction. There are new projects that come to the market every month. Moreover, a fascinating fact is that machines are used in construction. Often, the construction and machinery sectors of Pakistan joined hands to benefit from the joint venture.

The construction industry is of massive benefit to the economy of Pakistan. On the other hand, the machinery industry is not that beneficial as the machines used are imported.

That's why Pakistan's GDP is affected adversely. The machines manufactured in Pakistan are not of excellent quality; that's why firms have to import the machinery from abroad. On the construction end, they make millions as now people are moving towards construction and are investing more and more in this business. That's why the construction industry of Pakistan is thriving. The machinery industry is also thriving to some extent. The machines that are produced in Pakistan then those companies are enjoying profits.

The construction Sector impacts Pakistan's GDP.

As stated earlier, Pakistan's construction sector contributes the second highest to the GDP, just next to the agricultural industry. It is a strong indication of the nation's development. Since the launch of the CPEC in the fall of 2016, Pakistan's GDP has been boosted and been positively affecting Pakistan's GDP. Nowadays, people are moving towards residential construction as it is one of the most beneficial construction forms. That's why the construction companies of Pakistan are earning millions of dollars with each passing year. The construction industry is the most rapidly growing industry in Pakistan; that's why they are earning profits in millions of dollars. The building sector had tremendous income in the past decade.

Machinery Sector impact on GDP

The machinery sector of Pakistan had a 2.5% contribution to Pakistan's GDP until 2018. Still, after that, the government of PTI imposed taxes on machinery imports to encourage the manufacturing of machines in the home country. The machinery industry of Pakistan would also thrive. Although many machines are imported from abroad, Pakistan's machinery industry is making millions of dollars since it is one of the most expensive equipment used.

Why and how machinery and construction sectors are making millions of dollars?

The question that arises is how Pakistan's machinery and construction industry is making millions of dollars and how they are the largest sector of Pakistan's economy. The answers are that the construction and machinery sectors have grown a lot in the past years. The construction sector has grown in the past decade when new shopping malls, superstores, projects, etc. Being made by which there is considerable profit in the construction sector of Pakistan as the construction industry has now become the leading industry of the country due to more and more people investing in construction projects.

On the other hand, when we discuss Pakistan's machinery industry, then again. It is because the machinery that is used all over the country are used is quite expensive. It is sold in lacs; that's why Pakistan's machinery industry earns a hefty amount of millions of dollars. Moreover, after 2018, the government increased the taxes on machinery imports by the PTI government. More and more manufacturers are manufacturing the machines in Pakistan and are selling them; that's why and how the machine industry is also earning millions of dollars.

CONCLUSIONS (The construction industry and machinery, Pakistan's largest industry, generates millions of Dollars)

After all, it can be stated that both of these industries generate millions of dollars as they are the largest industry in the country and the projects that have been constructed in the past decade. It was successful for the nation and also for the building companies, and the construction companies are earning millions.

Moreover, Pakistan's machinery industry is also earning millions of dollars as machines are enormous and expensive. That's why the machinery industry is also earning a massive amount. Machinery also works as a sub-sector of the construction industry. They are earning millions of dollars as these industries collaborate and have millions of dollars amount. Construction is considered one of the potential components in Pakistan's industry. A sub-sector construction contributes 13.13% as one of the possible features in the industrial sector.

RECOMMENDATIONS (for the construction sector)

Following are the recommendations for the construction sector on how it could perform well.

Black money should not be invested in the construction sector: One of the significant issues of the construction sector is that many people invest their black money in the construction sector to make it white. Even if this black money is extracted, then construction would still be one of Pakistan's leading industries.

Projects should be speeded up: some projects are not working at a proper pace, and the construction of some of those projects should be speeded up to have more projects being built, which would be more beneficial for the economy of Pakistan.

Invest in the country: One of the major drawbacks is that many builders and construction investors invest their money abroad and not in Pakistan. That money should be invested in Pakistan, and the country's economy would be more substantial, and more amounts would be added to its GDP.

Contribute more to the GDP: The builders should contribute more to the GDP, and construction investors should contribute more to their GDP.

Don't have projects on China cutting: Many projects in Pakistan are on China cutting. Those projects should be demolished, and the new projects that are being made should be done legally. The people living there should be provided proper residence as they could not be made homeless.

Therefore, the recommendations mentioned above are for the construction industry. They are already making millions and are the leading industry in Pakistan. So they should use the technique discussed above and ways that will be beneficial for both the country and the construction industry as well, by which they would keep making millions.

RECOMMENDATIONS: (For machinery industry)

Following are the recommendations for the machinery industry by which they would be making more millions:-

Companies should use country-made machines: the companies that are importing machinery from abroad should use country-made machines and not import the machinery from abroad. The effects on GDP would be beneficial.

Manufacture more machinery in the country: It's good that machines are being manufactured in Pakistan and used, but more machines should be manufactured and used. The import bill would be reduced and will not harm the GDP of the country.

Therefore, Pakistan's machinery industry should follow the above-stated steps, affecting the country's GDP positively.

Thus, after all the discussions and the research article written, it is clear how Pakistan's construction and machinery industry is making millions of dollars and improving.