According to data supplied by Pakistan’s Securities and Exchange Commission, construction and real estate, as well as IT, were the top sectors attracting the most businesspeople and entrepreneurs in May of this year (SECP).
With 252 firms formed, the construction and real estate industry took the lead, followed by trading (247), IT (216), services (149), e-commerce (64), and food and beverages (59).
“The government is really interested in the building sector,” said Ahmed Lakhani, a senior research analyst. “The Pakistan Stock Exchange is booming with cement and steel companies.”
The government’s Naya Pakistan Housing Scheme and other initiatives are encouraging the building and real estate sectors, according to Lakhani.
Prior to taking office, Prime Minister Imran Khan stated that his government would seek an economic turnaround through the building sector.
Pakistan is said to have a significant housing shortage of roughly 11 million homes. And this demand is growing at a rate of 700,000 homes every year. (Opponents of housing demand argue that unused or vacant housing is also languishing around the country because people can’t afford it.)
In May, the SECP registered 1,597 new businesses. In May of last year, the figure was 107 percent higher. The overall number of firms registered has risen to 143,416.
“For the first time in history, new company incorporation will exceed 25,000 in a fiscal year (this fiscal year),” according to an SECP official. “In comparison to the previous year, we predict a 35 percent increase.”
“People gravitated toward IT-based enterprises during the pandemic. Second, forming a business is now very simple, and you may do so for Rs1,500 from anywhere in the world.”
This year, IT companies saw a 55 percent increase in revenue. It has never happened before, according to the official.
According to a statement from the SECP, “for the second consecutive month, over 100 percent growth in the formation of new enterprises has been observed.”
The SECP attributed the upward trend to digitization and automation, as well as the implementation of simpler combined processes for name reservation and incorporation, as well as support from the SECP’s new Business Centre.
Around 99 percent of businesses registered online in May. A total of 175 international users have registered.
48 new enterprises from Azerbaijan, China, Denmark, Germany, Korea South, Kuwait, Malta, the Netherlands, Norway, Russia, Singapore, Turkey, the UAE, the UK, and the US have disclosed foreign investment.