Quick answer (updated October 2026): This 2023 news post reported builders’ associations saying many projects had slowed or stopped due to inflation and high material costs. Material prices remain the main driver of construction cost; in 2026, grey structure in Lahore costs about Rs 3,000 to 3,250 per sq ft (estimate only; the final price is set in your written BOQ). See construction prices update.
Glorious Builders is a construction company in Lahore offering design, approvals, grey structure and turnkey construction under a written BOQ contract.
Frequently asked questions
How can I protect my project from price increases?
Lock quantities and brands in a written BOQ and keep materials ahead of each stage.
News report (2023)
Builders Association Reports Halting of 50% Construction Projects and Rising Unemployment in Pakistan
Islamabad, July 16, 2023 – The construction industry in Pakistan is grappling with significant challenges as soaring inflation continues to impact workers and businesses alike. The Builders Association has revealed that nearly 50 percent of construction projects in the country. Have come to a halt due to the escalating costs of doing business, leading to widespread unemployment among the estimated 25 million workers associated with the industry.
The construction sector, which has long been considered a crucial driver of economic growth and employment in Pakistan, is now facing an uphill battle. Inflationary pressures, marked by rising material costs and other operational expenses, have dealt a severe blow to both small and large-scale construction projects.
“The current state of the industry is deeply concerning,” says the Builders Association spokesperson. “The high costs of doing business, primarily driven by inflation, have forced many construction projects to be put on hold indefinitely. As a result, around 10 million workers directly linked to the construction sector are now grappling with unemployment and uncertainty.”
The skyrocketing prices of construction materials, including cement, steel, and wood, have significantly contributed to the financial strain experienced by builders and contractors. The sharp increase in costs has made it increasingly difficult for ongoing projects to stay afloat, leading to a decline in new construction ventures across the country.
The Pakistani construction industry finds itself grappling with significant challenges due to the adverse impact of inflation on its workforce. Inflationary pressures have resulted in a surge in the cost of living. Making it increasingly difficult for construction workers to meet their basic needs and maintain a decent standard of living. The rising prices of essential commodities, such as food, housing and transportation. Have exacerbated financial hardships for laborers and their families, leading to a strain on the industry’s productivity. And overall growth with the construction sector being a vital contributor to the nation’s economy. These struggles can have far-reaching consequences affecting the pace of infrastructure development and investment opportunities. Policymakers and industry stakeholders must address these issues urgently. By implementing measures to alleviate the impact of inflation on workers, ensuring sustainable growth. And fostering a conducive environment for the industry to thrive despite the prevailing economic challenges.
The repercussions of this crisis are far-reaching, affecting not only workers and businesses but also the broader economy. The halt in construction projects has resulted in reduced economic activity, decreased investment opportunities. And a slowdown in the housing sector, further exacerbating the challenges faced by the industry.
Workers, who rely heavily on employment within the construction sector to support their families, are particularly feeling the pinch. “How will we earn?” laments a construction worker, reflecting the concerns shared by many in the industry. “With projects halted and no new opportunities, the future looks bleak for us and our families.”
Industry stakeholders and government authorities must act immediately to address the gravity of the situation. To address the pressing issues faced by the construction sector. Efforts to curb inflation, provide financial relief to builders, and encourage new investments are necessary. The steps to revive the industry and protect the livelihoods of millions of workers.
In conclusion, as the construction industry in Pakistan grapples with the crippling effects of inflation. The sector’s workforce faces the harsh realities of unemployment and financial strain. Urgent measures are required to stabilize the industry. The support ongoing projects, and restore opportunities for the millions of workers who rely on the construction sector for their livelihoods.
Written by Hafiz Furqan Ahmad. Reviewed by Waqas Rana, Owner, Glorious Builders.
