Table of contents

1...Introduction of construction industry.

2.Top construction companies in Pakistan..

3.. Association of construction industry in Pakistan.

4.. Investment Potential in Housing Sector

5.. Decline of construction industry in Pakistan

6.Progress of construction industry in Pakistan.

7.Impact of construction industry on economy of Pakistan.

8...other supporting industries to construction industry

NTRODUCTION TO CONSTRUCTION INDUSTRY Construction industry is one of the major pillars of the economy in Hong Kong. The more crossboundary co-operation on economic activities implies heavier demands on new transportation and infrastructure developments. As an important component of the city, the industry embraces all the construction activities of major infrastructures and real estate properties including new construction, repairing and alterations of any existing structures and involves different stakeholders such as real estate developers, professionals, academics, contractors, workers, and Government officials. Hence, the industry has immense potential in generating more employment opportunities in particular for the forthcoming ten major infrastructure projects and provides a good platform for dedicated people to contribute to the development for the future of the community. The construction industry plays an essential role in the socio economic development of a country. The activities of the industry have great significance to the achievement of national socio-economic development goals of providing infrastructure, sanctuary and employment. It includes hospitals, schools, townships, offices, houses and other buildings; urban infrastructure (including water supply, sewerage, 280drainage); highways, roads, ports, railways, airports; power systems; irrigation and agriculture systems; telecommunications etc. It deals with all economic activities directed to the creation, renovation, repair or extension of fixed assets in the form of buildings, land improvements of an engineering nature. Besides, the construction industry generates substantial employment and provides a growth impetus to other sectors through backward and forward linkages. It is, essential therefore, that, this vital activity is nurtured for the healthy growth of the economy. The main purpose of this study is to see whether growth in construction industry actually caused the economic increase or, alternatively, did economic expansion strongly contribute to construction growth instead.

List of top construction Companies in Pakistan

The name of some top construction companies working in pakistan is given bellow. 1. Indusmens Corporation 2. Habib Construction Services (Pvt) Limited 3. Descon Engineering 4. Technical Associates Pakistan (Pvt) Limited 5. Izhar Construction (Pvt) Limited 6. Habib Rafiq (Pvt) Limited 7. SKB Engineering and Construction 8. Paragon Construction (Pvt) Limited 9. Waquat Builders & Developers 10. Usmani Associates 11. Taloo Builders & Developers

12. M Saleem Construction Company 13. AMCE (Pvt) Limited

Association of construction industry in Pakistan and its role

ASSOCIATION OF BUILDERS AND DEVELOPERS OF PAKISTAN (ABAD) is a national level representative organization of Builders and Developers, registered under the Companies Ordinance, 1984 with Registration No. KARACHI No. 4967 of 1977-78 and licensed under Trade Organizations Ordinance, 2007 and it's affiliated with the Federation of Pakistan Chamber of commerce and Industry (FPCCI). It was formed in the year 1972 with the aim and objective of unifying and streamlining the construction activities of private sector. The principal aims and objectives of ABAD include.

Unifying builders and developers for their collective good. Promoting housing industry in the country. Providing assistance to the Government in formulating its housing policies and plans. Coordinating between ABAD members, the Government and other agencies. Dealing with problems faced by its members in the execution of their projects. Organized research. Awareness and training program to promote the science and art of building. Working actively for eradication of unethical business practices from the housing and developing field. Exploring the prospects of large-scale projects in the public sector and then acting as a consortium of ABAD members to secure and execute the projects.

Today, ABAD has in its fold more than 600 leading construction companies of the country. Most of its members' offices are equipped with up-to-date systems of designing, cost control, project management and latest civil engineering techniques to minimize the cost of construction. the association operates on democratic lines with election of One Chairman, Vice Chairman and Managing Committees and One Chairman from each of its two regions i.e., Southern Region and Northern Region for a full term of year. The Chairman-ABAD is elected among Full / Ordinary members and the Vice Chairman from Associate Members and One Chairman each from its two respective.

As a representative organization of the country's builders and developers, ABAD has made a valuable contribution in the formulation of National Housing Policy and Sindh Building Control Ordinance. It has also played a leading role in securing and increase in the House building Finance Corporation component of housing loans as well as the allocation to HBFC in the Federal Budget. In Karachi ABAD has played a pivotal role in procurement of land for its members and also for the issuance of no objection to them by Karachi Development Authority. Other major achievements of ABAD include increasing the covered area of flats, fixation of the selling price of housing units, inclusion of a provision of escalation, simplification of the procedure for the permission to mortgage and registration of leases, increase in the period of completion and streamlining of documentation procedures regularly. Although there is a pressing requirement for houses in Karachi yet on account of non-availability of infrastructure and other amenities, some schemes cannot be developed due to scarcity, efforts to remove these bottlenecks are continuing on all possible levels. As a socially responsible organization in addition to the above core functions ABAD also extends donations and other kinds of support to deserving institutions and welfare organizations. A safe shelter to live in is recognized the world over as a fundamental human right and that is the vision behind ABAD's efforts and ventures.

Investment Potential in Housing Sector

There is an annual shortfall of 270,000 housing units at present while the backlog of around 7.0 million units is in addition. The Prime Minister has issued a number of policy guidelines under HOUSING FOR ALL program for launching housing schemes for Government employees & provision of infrastructure to the housing development schemes. The Government has identified housing and construction as one of the major drivers of growth and has undertaken a number of measures to give impetus to this Sector which have helped reviving construction activities in the Country. Some of these include: Significant reduction in duties and taxes on import of building materials including steel & its products, Construction Machinery & Equipment Removing uncertainties from the real estate market by computerizing ownership documents Free Trade Agreement between Pakistan & China. Huge investments are pouring in from international investors from UAE, Singapore, Malaysia, China etc. who have committed for US$ 43 billion on two islands of Bin Qasim, US$68 billion on a New City Project in Hawksbay, Karachi and are also executing mega housing projects in Lahore, Gwadar, Mangla & DHA Karachi and Islamabad. The new home financing schemes by

local and foreign leasing and financial institutions, through aggressive marketing, are playing an important role for the growth in this sector. Also, there are numerous infrastructure development projects in progress in the Country that include a large number of flyovers, underpasses, highways, tunnels, dams, roads and industrial projects which have lead this industry to surpass its past status and glory

Decline of construction industry in Pakistan

KARACHI: The construction industry recorded a decline of 10.8 percent in FY09the largest fall in 37 years, said the State Bank of Pakistans annual report for 2008-09 released on Thursday. Construction industry constitutes around 2.4 percent of GDP. The drag by construction sector to the growth of GDP and industry in FY09 was significant at (-) 0.3 and (-) 1.0 percentage points respectively. Construction industry in FY09 had to put up with sharp increase in building material prices during the first eight months of the current year, significant cut in disbursement of PSDP funds and dearth of financing facilities which caused the construction activities to shrink significantly. Not surprisingly, almost all other indicators of construction growth also paint a gloomy picture. The weakening construction activity is a source of disquiet especially from the perspective of employment generation among unskilled labor force and ultimately for poverty alleviation. Almost 3.3 million people were employed in construction sector in FY08 and the number for rural areas (2.2 million) is twice that of urban areas (1.1 million). Moreover, construction sector is also strongly associated with the growth in a number of manufacturing industries including cement, metals, glass, paints, etc. However, there are some hopes of a recovery in construction activities in FY10 keeping in view the decline in building material prices. The expectation of this recovery is further supported by higher PSDP allocations in the FY10 budget, expected initiation of power projects and reconstruction activity in Swat, as well as the impact of the recent easing of monetary policy. A performance indicator of the construction industry was domestic cement dispatches, which fell from 22.4 million tonnes in FY08 to 19.4 million tonnes in FY09. Iron and steel production declined from 8.238 million tonnes in FY08 to 5.975 million tonnes in FY09. Import of iron and steel dropped from 2.22 million tonnes to 2.04 million tonnes. Foreign direct investment in this sector took a deep plunge, going down from $193.2 million to $130.4 million.

Progress of construction industry in Pakistan:

Impact of construction industry on economy of Pakistan:

The housing and construction sector in Pakistan plays an important role in developing aggregate economy and reducing unemployment. It provides substantial employment opportunities as it contributes through a higher multiplier effect with a host of beneficial forward and backward linkage in the economy. The sector through linkages affects about 40 building material industries, support investment and growth climate and helps reduce poverty by generating income opportunities for poor household. It provides jobs to about 5.5 per cent of the total employed labor force or to 2.43 million persons, (2.41 million male and0.2 million female) during 2003- 04 (Economic Survey 2004-05) Unfortunately the construction sector is one of the most neglected sectors in Pakistan. It is at low ebb, which can be judged from the fact that per capita consumption of cement in Pakistan is one of the lowest among the developing countries i.e. 72 kegs.

Supporting industries to construction industry:

Sanitary And Bathroom Fittings Manufacturers In Pakistan , Pakistani Companies Anwar Industries (pvt) Ltd. Farm Power (pvt) Ltd Haroon Importers & Haroon Pak Products International Ceramics Limited International Ceramics Limited Ittefaq Industries Modern Plastic Industries Pak Milli Industry Rehman Industries Rehman Plastic Industries Royal Industries S.a. Baig Industries (pvt) Ltd. Sethi Industries (pvt) Ltd. Shahi Engineering & Foundry Alisha Trading Company Alisha Trading Company Dadabhoy Padube Ltd

 Emco Industries Ltd. Marshal Tiles Industries (pvt) Ltd. Master Tiles & Ceramic Industries

Pipe manufacturers in Pakistan:

Noor Pipe Industries (Pvt) Ltd Pak Arab Shafaf Pvc Pipe Zaka Sons SUPER PVC INDUSTRIES U PVC PIPES Amwar Agencies FRAZ BROTHERS INTERNATIONAL national pvc pipe factory SAS PVC Industries Husssain Enterprises Mehran Traders-PVC flexible pipe BRAVO PIPES LTD. Sarhad Plastic

ENTREPRENEURSHIP
PROJECT ASSIGNMENT

GROUP NAME:

FALCONS

GROUP MEMBERS: Muhammad Faheed Muhammad Aftab Muhammad Attiq Sharjil Akram Saddam hussain Ali Hussain L1F11BCMH0001 L1F11BCMH0002 L1F11MCOM2039 L1F11MCOM0031 L1F11MCOM0008 L1F11MCOM0009

SUBMITTED TO: Sir Farhan sherazi

(Construction

Business)