- Senator Ahad Cheema chairs meeting on construction sector.
- Package to address financial and policy bottlenecks in sector.
- Industry consultants to come under direct regulatory oversight.
ISLAMABAD: The federal government is exploring a comprehensive reform package to revive and modernise the construction industry in the country.
The package includes the creation of a Construction Industry Development Board (CIDB), a dedicated Construction Development Bank (CDB), rationalisation of import and export policies and targeted tax reforms, The News reported on Sunday.
The development emerged during a high-level meeting chaired by Federal Minister for Economic Affairs and Establishment Division Senator Ahad Khan Cheema to review major regulatory, operational and financial reforms for the construction sector.
The meeting was attended by Minister of State for Finance Bilal Azhar Kayani, Federal Secretary for Housing and Works Captain (retd) Mahmood, the Public Procurement Regulatory Authority (PPRA) managing director, representatives of the Construction Association of Pakistan (CAP) and senior officials concerned.
Under the proposed reforms, the CIDB would have a dual mandate of promoting the development of the construction sector and regulating industry standards, contractors and consultants.
Comprising representatives from the public and private sectors, the board would provide a unified platform for improving construction standards nationwide.
Senator Cheema said that the federal government and CAP were fully aligned on the need for such a body, adding that its proposed framework would be formally submitted to Prime Minister Shehbaz Sharif for final approval.
The broader package would seek to address financial and policy bottlenecks through targeted tax incentives and rationalised import and export policies aimed at promoting the adoption of modern construction technologies and strengthening domestic capacity.
The minister also announced that the standard Defect Liability Period (DLP) for public development projects would soon be extended from one year to three years, with a roadmap to eventually increase it to five years.
He said that civil infrastructure should not deteriorate soon after completion and that a longer liability period would encourage contractors and executing agencies to maintain higher quality standards and prevent premature deterioration of public assets.
Senator Cheema also highlighted a regulatory gap concerning consultants. While contractors currently face penalties for default or poor performance, consultants are not subject to a comparable legal accountability mechanism.
Under the proposed CIDB framework, consultants would also come under direct regulatory oversight and could be held legally and financially accountable for design flaws and technical errors.
CAP representatives endorsed the proposal, stressing the need for greater accountability to ensure sound designs and protect public investment.
Responding to CAP proposals regarding difficulties in obtaining financial and performance guarantees and the establishment of a specialised Construction Development Bank, Senator Cheema directed Minister of State for Finance Bilal Azhar Kayani to initiate formal consultations with the State Bank of Pakistan (SBP) and Pakistan Banks Association (PBA).
He said that the proposal for a dedicated CDB would be considered after assessing feedback from the SBP and PBA and determining its financial feasibility.
Senator Cheema reiterated that the government’s priority was to ensure that every public infrastructure project was cost-effective, durable and executed to high standards.
He said public funds were a national trust and could not be allowed to go to waste because of substandard construction or flawed technical designs.
He added that an independent body with both development and regulatory functions would strengthen accountability, streamline dispute resolution and help bring Pakistan’s construction standards closer to international benchmarks.
