Assessment of Potential Effects of China Pakistan Economic Corridor on Development of Pakistan’s Construction Industry

Abstract

Role of construction sector in development of infrastructure is inevitable. The construction industry remains the key player in achievement of basic infrastructure and ultimately in social prosperity as well as economic stability. It is one of the pillars of economy which directly related to GDP and industrial growth of Pakistan. However, current status of Pakistan construction industry is not performing to its true potential. Among many factors, the lack of foreign direct investment (FDI) is one of the key factors in such performance. The recent developments of China Pakistan economic corridor (CPEC ) is one of the major sources of FDI which will provide opportunities for all sectors of the economy including infrastructure, railway, energy production, agriculture, aviation, construction industry, etc. However, the true potential remains to be explored. The current research explores the impacts of CPEC on uplift and development of construction industry of Pakistan. The objective of the study was to evaluate the impact of identified factors on local construction industry. After a comprehensive literature review, different impacts factors were identified. These factors were then categorized into different impact areas. Based upon these areas, a questionnaire was developed and authenticated by using Delphi technique. The developed questionnaires was distributed among industry professionals of different organizations to assess impact of CPEC on the factors affecting the development of Pakistan. The study received a response rate of 72%. The response of industry experts was analyzed using statistical analysis package SPSS. The application of ranking factor analysis highlighted that the development of human skill the most important factor to be affected by CPEC .Similarly, the frequency analysis observed that human skill development achieved the highest score (3.77) followed by project management practices (3.71). The overall results of this study helped to prioritize factors to support uplift the construction industry of Pakistan. These prioritized list of factors referred to the construction industry of Pakistan that has not still been established.