To Identify the Challenges of Fiscal Policy for Construction Industry in Pakistan

Abstract

The entire influence of a country's budget outcome on economic activity is referred to as fiscal policy. Fiscal policy has its own share of benefits & challenges in particular groups. Therefore, the aim of this study is to identify the benefits & challenges of Fiscal Policy for Construction industry. A detailed literature review has been conducted to identify the possible benefits and key challenges to better fiscal policy. In later stage, a set of questionnaire was prepared using the identified factors. The data was collected from construction industry professionals with experience on fiscal policy management. The data was analysed by aggregated average mean using SPSS. The factor ranks were made on the higher values of aggregated mean value. The study concludes that the main hurdles to better fiscal policy are import/export restrictions, delays in land/plot permits/licenses, and currency fluctuations, as well as government subsidies on construction materials. Similarly, the top benefits for better fiscal policy in the construction industry include meaningful salaries/wages and employment for daily wage earners. The study recommended that, Policymakers must be urged to adopt suitable fiscal policies that address these challenges in order to evolve and improve the construction sector.