Islamabad: The government is considering a comprehensive development package aimed at reforming the construction sector, as announced by Federal Minister for Economic Affairs and Establishment Division Senator Ahad Cheema. This initiative includes regulatory, operational, and financial reforms, focusing on establishing a Construction Industry Development Board (CIDB) and evaluating the need for a dedicated Construction Development Bank (CDB).

According to Press Information Department, a high-level meeting chaired by Senator Cheema included key figures such as Minister of State for Finance Bilal Azhar Kayani, Federal Secretary for Housing and Works Captain (R) Mahmood, and representatives from the Construction Association of Pakistan (CAP). The discussions emphasized the dual role of the CIDB in developing the sector and overseeing industry standards. The proposed board will consist of public and private sector representatives and will be submitted to the Prime Minister for approval.

The development package aims to address financial and policy obstacles through tax incentives and aligned import and export policies. The government plans to extend the Defect Liability Period for public projects from one year to three years, with a future goal of five years, to ensure long-term infrastructure durability.

Senator Cheema highlighted the importance of regulatory accountability for consultants, noting the absence of penalties for design flaws or technical errors. The CIDB framework will address this gap, ensuring consultants are held accountable. CAP representatives endorsed this approach, stressing the need for design precision and protection of public investments.

In response to CAP’s concerns about banking hurdles, Senator Cheema directed Minister Kayani to engage with the State Bank of Pakistan and Pakistan Banks Association for discussions on the potential establishment of a CDB. The decision will be contingent on financial feasibility assessments.

The government’s focus remains on ensuring public infrastructure projects are cost-effective and durable, with a commitment to raising national construction standards to international levels through independent oversight and accountability mechanisms.