Analysts believe this may be a temperory relief coming from private sector projects in housing which have recently kicked off, gains of which are being enjoyed primarily by three players: Maple Leaf Cement, Cherat Cement, and DG Khan Cement. Aggressive marketing and positioning to markets after expansions at more affordable price points than many players located in the south is allowing growth amongst these players. However, it is evident that more projects are picking up in Punjab and up, compared to the South. One reason associated to this is that Punjab government is more active in improving regulatory environment for private sector projects than other provinces have been.

If private sector projects keep rolling in, demand will keep improving, though a major recovery will be more equilateral across the industry if public spending catches up. The government has recently released PSDP funds to the tune of Rs37 billion which are already planned projects related to CPEC. However, the recent CNIC requirement from agents and wholesalers of transactions—most of whom operate informally—may curb demand in upcoming months as they will stop likely stop buying instead of becoming formal.

As for the major expectation last year that Naya Pakistan Housing Program (NPHP) will soon start constructing houses which will provide much needed impetus in the construction industry so far remains unrealized. Last week, the government announced it would be giving a subsidy for NPHP which indicates the plan is still in the works. But going into the bidding process, identifying developers, and thereon, finalizing construction plans and getting into procurement may take another 6 months or so to actually bear fruit.