Economic Sustainability in the Construction Industry of Pakistan

Abstract

The construction industry is one of the most important components in the economic development of a developing country, being a major contributor to the national economy of many such countries. The construction industry is largely responsible for the physical provision of housing and infrastructure and, as such, can be the backbone of prosperous economies, providing social development and employment. In the developing economy of Pakistan the construction industry is encountered by different economic and technical problems which affect the construction industry. Also the construction procedures in Pakistan consume excessive time and resources which have a direct effect on the country‟s economy and socio-economic development. Macroeconomic problems in unemployment and inflation add to the existing economic situation in the construction industry. Other major contributors are the lack of appropriate infrastructure, weak and inefficient legal, administrative and financial institutions. The recent global shift to sustainable development also requires that the construction industry in Pakistan initiate important strategic developmental policies in order to meet the future demand for economical and sustainable development. This research uses a comprehensive literature review to conduct a survey into the existing local development barriers and then obtains a census of expert opinion using the DELPHI methodology to rank a set of sustainable developmental policies and strategies. The research then establishes a comprehensive list of recommendations for achieving economically sustainable industry. The results indicate that the main factors affecting the economy and efficiency of the construction process in Pakistan are administrative problems and bureaucracy, inadequate finance system, Inflation and fluctuation of prices, lack of management and planning, excessive wastages and corruption. Strategies and policies for the solution of these problems were then identified and ranked in order of their importance using the Delphi methodology.