Gammon Pakistan Limited (PSX:GAMON) announced its progress report for the first quarter ended September 30, 2026, revealing that it did not secure or commence any new construction projects during the period, resulting in no operating revenue from contract activities.
In a notice to the Pakistan Stock Exchange, the company stated that it continues to pursue business opportunities in both public and private sectors where financially viable, while maintaining liaison with prospective clients and exploring potential collaborations.
However, challenging market conditions—including elevated input costs, cautious client spending, and limited availability of commercially viable projects—prevented any new awards during the quarter.
The operating environment for construction and infrastructure remained difficult, with the State Bank of Pakistan keeping its policy rate at 11.5 % through July and September meetings to steer inflation toward a 5‑7 % target. Headline inflation rose from 9.2 % in July to 11.1 % in August before easing to 10.3 % in September, driven by food and energy price pressures, higher global commodity prices, and energy cost pass‑through.
For FY27, the Federal Public Sector Development Programme (PSDP) was allocated roughly Rs1 trillion, but implementation remains gradual. Project awards are constrained by fiscal priorities focused on completing existing schemes, higher financing costs, and delayed decision‑making from public and private clients.
Throughout the quarter, management maintained regular engagement with government departments, public sector organizations, and private sector clients, evaluating potential projects with emphasis on commercial viability, financial prudence, and risk management. Ongoing efforts also address outstanding contractual matters.
The company upheld strict financial discipline, controlling administrative and operating expenditures to preserve liquidity, and continued to recover outstanding receivables, retention monies, and contractual claims related to completed projects.
Looking ahead, the board expressed optimism about the medium‑term prospects for the construction sector, citing planned development spending and continued investment in infrastructure, transport, and logistics as factors that should gradually improve contracting opportunities. The lack of new awards, the company noted, reflects prevailing market and economic conditions rather than a reduction in business development efforts.
