HAMID WALEED

LAHORE: The local heavy construction industry is fast heading towards a crisis-like situation because of its fast replacing with Chinese construction firms.

Most of the Chinese construction firms are winning contracts in the power, cement, oil and gas sectors throughout Pakistan and compete local firms on the single factor of cost.

Sources in the local heavy construction industry have also pointed out that the Chinese firms are openly claiming of fetching of prisoners from China in the shape of labour to work on construction projects in Pakistan. Interestingly, most of the Chinese firms are not involving local labour in construction work, leaving them jobless across the industry.

The industry sources have apprehended of wiping out well established but small size heavy construction firms due to heavy presence of Chinese firms in Pakistan. The local firms are unable to win tenders both in public and private sectors. One representative of a small and medium size firm said that they have lost some 20 projects in power, oil and gas sectors due to the Chinese competitors. He said the Chinese construction firms have speedily replaced local ones in later half of 2017.

Both the local firms and labour are in trouble due to rising presence of Chinese firms, they added.

They further pointed out that Chinese are also exporting machinery besides the labour. It may be noted that Prime Minister Shahid Khaqan Abbasi had told during a media briefing that 20,000 Chinese are working in Pakistan. But the industry circles doubt this figure and claimed that the actual number could be much higher. As many as 5000 Chinese would be active on the Thar Coal power project, they said, and added that Chinese have quoted Rs 110 per cubic meter for the project against Rs 140 per cubic meter by the local firms.