This study aims to investigate the current issue and challenges faced by the construction companies of Kabul, Afghanistan due to Covid-19 pandemic. At the same time, study also explore the possible initiatives that should be taken by the government to overcome the challenges faced by the construction companies. For this purpose, qualitative methodology was employed based on interpretivist philosophy and inductive approach. Phenomenological methodology is capitalized to achieve the study objectives. Semi structured in-depth interviews were conducted with twelve respondents from the construction companies of Kabul, Afghanistan. This study concluded that construction business operations, supply chain, revenue and funding (financing) were badly affected by the pandemic which led to unemployment and instability of construction sector. Furthermore, the study found that government can play a vital role in helping the construction business by reducing the interest rates, providing tax subsidies, reduction in the utility charges and creation of crisis fund for the construction sector. Finally, this study recommends that government should take the initiatives mention above as soon as possible before the construction sector witness a collapse.