Islamabad: Federal Minister for Economic Affairs and Establishment Division Senator Ahad Cheema chaired a meeting focused on advancing reforms to fortify Pakistan’s construction sector. The discussions aimed at enhancing project delivery and addressing significant challenges within the industry.

According to Press Information Department, the meeting evaluated the proposed Construction Industry Development Authority (CIDA) Bill. Minister Ahad Cheema highlighted the necessity for detailed analysis of the Bill, considering whether a unified body should govern the construction sector or if two separate entities are needed: one for regulation and another for industry promotion and related affairs. He instructed relevant officials, including Minister of State for Finance Bilal Azhar Kayani and representatives of the Constructors Association of Pakistan (CAP), to further consult on the proposed institutional framework.

The issue of retention money deposited by contractors during the defect liability period was also discussed. A proposal was considered to place these funds in interest-earning accounts, with both principal and interest returned to contractors post-stipulated period. The Minister for Economic Affairs called for additional consultations to formulate an effective mechanism.

The meeting deliberated on extending the existing Dispute Avoidance/Adjudication Board (DAAB) mechanism to government projects, which CAP suggested applying to projects valued at Rs20 billion and above. Minister Cheema advocated for a lower threshold and further stakeholder consultations to establish an appropriate limit.

The future framework for the construction sector is expected to incorporate rules and standards from the International Federation of Consulting Engineers (FIDIC). Minister Cheema stressed the significance of these international standards as a foundational reference.

Additionally, the Minister directed the Pakistan Public Procurement Regulatory Authority (PPRA) to initiate the introduction of a defect liability period of at least three years for major projects, with plans to extend this measure gradually to smaller projects.

The meeting included participation from Minister of State for Finance Bilal Azhar Kayani, Secretary Housing Captain (R) Muhammad Mahmood, Member Planning Commission, MD PPRA, representatives of CAP, and other senior officials.