Gammon Pakistan reports no new projects in Q3 amid economic slowdown

April 03, 2026 (MLN): Gammon Pakistan Limited (PSX:GAMON) did not secure or undertake any new projects during the third quarter ended March 31, 2026, citing continued weakness in the construction and infrastructure sector due to economic constraints, high financing costs, and subdued investment activity.

In its progress report, the company stated that despite ongoing efforts to resume business operations, no significant progress was made in winning new contracts during the period.

Management reiterated that it remains actively engaged in pursuing opportunities, though market conditions have limited project availability and delayed award decisions.

The company highlighted that the operating environment remained difficult throughout the quarter.

While some macroeconomic indicators showed relative stability, overall economic activity stayed subdued.

Public sector development spending continued to face fiscal constraints, and private sector investment remained cautious due to elevated interest rates and broader economic uncertainty.

These factors collectively restricted new project flows and slowed execution timelines across the industry.

Despite these challenges, the company continued its business development efforts, including participation in tendering processes, engagement with government bodies and private sector clients, and exploration of potential joint ventures.

Management emphasized that all opportunities are being evaluated carefully, with a strong focus on financial viability and risk management.

On the financial front, the company maintained strict cost control measures to preserve liquidity. Administrative and overhead expenses were kept in check, while efforts to recover outstanding receivables, claims, and retention monies from completed projects remained ongoing. The company noted that such recoveries are critical for strengthening its financial position.

Looking ahead, the Board acknowledged that prevailing economic conditions are likely to continue affecting the company’s ability to secure new work.

However, it expressed cautious optimism that any improvement in macroeconomic stability, including potential easing of monetary policy and increased development spending, could revive activity in the construction sector and create future opportunities.

The company concluded that the absence of new project awards during the quarter was primarily due to external market conditions, reaffirming its commitment to prudent financial management and continued pursuit of viable business opportunities.

The aforementioned information was disseminated through a notification to Exchange.

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