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Inflation in Pakistan: With the rise of prices of construction material alongwith labor costs, the overall prices associate with construction has increased significantly.

Costly Material: Price hike of cement, brick, steel and other construction material has gone high mainly because of political instability in Pakistan and the flucations in global market.

Currency devaluation: Depreciation of the Pakistani Rupee against major currencies can increase the cost of imported construction materials and equipment.

Government tax Policies: Pakistani Government has recently put huge taxes on construction industry which has ultimately increased the construction cost. Changes in government policies, such as taxes and duties on construction materials, has directly impact construction costs.

High Utility Bills: Energy costs, including electricity and fuel, influence the production and transportation costs of construction materials, contributing to higher overall expenses.

Labor Costs: Demand-supply imbalances in the labor market and rising wages for skilled and unskilled workers also contribute to increased construction costs.

Land Prices: Increasing land prices in urban areas contribute to higher overall project costs, particularly for residential and commercial developments.

Political Instability: Political instability and security concerns may lead to uncertainty in the business environment, affecting investment decisions and project timelines.

Addressing these challenges requires a multifaceted approach involving government policies, industry regulations, infrastructure development, and economic stability to ensure sustainable growth in the construction sector.