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Impact of Naya Pakistan scheme on Construction Industry

Naya Pakistan scheme

More than 20 million homeless people call Pakistan their homeland, the 5th most populous country globally. The unprecedented rate of urbanization and subsequent housing crisis is a pressing concern for decades now. According to estimates, 350,000 urban housing units are required to meet the demand of a vast population.

 Keeping in view the proportions of the population, about 62% of the housing units should be allocated for the low-income groups, followed by 25% for lower-middle-income groups and 10% for middle and higher-income groups in Pakistan. 

Urban Housing Units in Pakistan :

Unfortunately, the formal supply is much lower than the perpetual demand for housing. There are only 150,000 formal urban housing units available per annum. The unmet demand is then channelled towards informal alternatives such as “kachi abadi” and settlements in agricultural subdivisions of urban lands. These alternatives are sought by the impoverished segment of the urban population, making up to 20% in total. 

According to estimates, The government needs to invest more than 100 billion Pakistani rupees in housing units to overcome homelessness with a backlog of 11-12 million units. Simultaneously, the demand continues to grow at the rate of 200,000 million housing units per annum. Currently, one-third of the population of Pakistan resides in urban areas. This is expected to rise to 50% by the year 2050. 

The Pakistan Tehreek-e-Insaf (PTI) government officially introduced the Naya Pakistan Housing Scheme

Considering the rampant housing crisis in Pakistan, The Pakistan Tehreek-e-Insaf (PTI) government officially introduced the Naya Pakistan Housing Scheme in 2018 as an attempt at economic development of Pakistan. This Pipeline project is a ray of hope for the public as it not only aims to provide formal housing units and facilities but also jobs to the skilled, semi-skilled and unskilled workforce. 

The housing sector, in particular, stimulates up to 200 downstream and upstream industries. The Naya Pakistan Housing Scheme can potentially revolutionize the economic landscape of Pakistan. The industries that will be directly and significantly affected include the banking sector, finance sector, housing sector, and the construction and construction materials industry. Potentially, this housing scheme encourages public-private partnership with more ease of doing business with reduced costs of doing it. 

The PTI government has set forth its agenda of constructing 50 lac housing units in the next five years as a cherished goal. Several infrastructural changes in urban areas are also planned, aiming at the regeneration and renewal. City development as the primary focus area will offer favourable conditions and new opportunities for investment, employment and growth. 

Pakistan’s construction industry in 2021

The transitioning phase is quite promising for Pakistan’s construction industry that contributes to almost 2.5% of the GDP per annum, accounting for 380 billion PKR. By 2028, the housing and construction sector will have an estimated industrial value that will go up to 2.8 billion PKR. 

Ranked as the 28th highest steel manufacturer globally, Pakistan also has a vast cement production capacity, including a cement capacity of 16,834,600 tpa in the south region and a cement capacity of 53,722,500 tpa in the north region, respectively. As the figures indicate, opportunities are high and so are the resources and capacity. The future is quite promising in terms of projected growth which  is attributed to the restructuring of governmental policies, introduction of incentives and relief packages that led to a better regulatory landscape than before.

The emerging landscape will also be rewarding for new market entrants, favouring market disruption like switching from retail to digital world. New entrants like are already setting the example. 

For the first time in Pakistan, is offering digital payment solutions for the Online Buying of Construction Materials. You can not only browse numerous options of construction materials at but can also get all the materials delivered to your door-step. With the technical expertise of procurement of construction materials doesn’t seem like a complicated process anymore. You can also compare Daily Construction Material Prices in Pakistan at

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