diff --git a/config/Paths.mk.in b/config/Paths.mk.in
index 8a518d5a5d..dc9d0c0353 100644
--- a/config/Paths.mk.in
+++ b/config/Paths.mk.in
@@ -58,4 +58,4 @@ XENFIRMWAREDIR           := @XENFIRMWAREDIR@
 XEN_CONFIG_DIR           := @XEN_CONFIG_DIR@
 XEN_SCRIPT_DIR           := @XEN_SCRIPT_DIR@
 
-PKG_INSTALLDIR           := ${SHAREDIR}/pkgconfig
+PKG_INSTALLDIR           := ${libdir}/pkgconfig