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Pakistan’s Construction Sector Sees Downfall in FDI in July

Possibly due to the termination of the amnesty program on June 30, foreign investment in the construction industry declined in July compared to the same month of the previous year.

Read: Pakistan to Host OIC Trade Festival 2022

Foreign direct investment (FDI) in the construction industry had a net outflow of $4.9 million in the first month of the current fiscal year, compared to an inflow of $31.2 million in July of the previous fiscal year.

In February of the second half of 2020, the industry collected $35.5 million in the greatest amount.

The construction sector contributed about Rs794bn to the Gross Domestic Product (GDP) in FY20 (FY19: Rs734bn), an increase of 8.1% on a year-on-year basis. The government was eager to attract as much investment as possible from both foreign and domestic firms. Contribution to GDP declined from 2.05 percent to 2.04 percent between FY19 and FY20.

Read: Pakistan Stands 153rd in E-Government Development Index

The construction of buildings is the largest market segment by type in 2019, accounting for 52 percent of the total revenue generated.

The construction industry employs 7.6% of the nation’s labor force and stimulates over 42 ancillary industries, such as aluminum, brick, cables, cement, fixtures, glass, kitchen and bathroom fittings, marble, paint, steel, tiles, transportation, warehousing, and wood.

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