MODERNISING PAKISTAN’S CONSTRUCTION SECTOR: AN INTEGRATED FRAMEWORK FOR ETHICAL GOVERNANCE, DIGITAL TRANSFORMATION, AND WORKFORCE DEVELOPMENT

Abstract

The construction industry is one of the most important sectors of Pakistan’s economy, employing approximately 7.8 percent of the national workforce and contributing about 2.8 percent to gross domestic product. Despite its economic significance, the sector continues to face persistent challenges, including widespread unethical practices, limited adoption of modern construction technologies, and a severe shortage of skilled labor. These structural weaknesses have constrained productivity, undermined project performance, and reduced public trust. This study examines the key barriers affecting the growth and efficiency of Pakistan’s construction industry and proposes a comprehensive strategic roadmap for its systematic modernization. Using a mixed-methods research approach, the analysis draws on secondary data spanning 2015–2025 from government reports, industry publications, and international research sources. Quantitative findings highlight the sector’s strong employment-generating potential, while qualitative analysis reveals deep-rooted problems such as fragmented governance structures, non-transparent procurement systems, low penetration of digital construction tools—particularly Building Information Modelling—and a substantial deficit of certified skilled workers. The study argues that these challenges are interlinked and cannot be addressed through isolated reforms. In response, it develops a four-pillar strategic framework focused on strengthening ethical governance and regulatory systems, accelerating digital transformation in construction processes, reforming human capital development through skills-oriented education and training, and improving the financial and policy environment to support sustainable growth. The findings underscore that modernising Pakistan’s construction sector is critical not only for economic expansion, but also for infrastructure development, employment generation, environmental sustainability, and the restoration of public confidence. The study offers actionable, stakeholder-specific recommendations aligned with national development objectives, providing a practical roadmap for policymakers, regulators, industry stakeholders, and academic institutions.