An important meeting on reforms in the national construction sector was held under the chairmanship of Federal Minister for Economic Affairs Ahad Cheema. During this meeting, the government discussed plans to introduce a comprehensive development package aimed at boosting the construction industry.
The meeting was attended by the Minister of State for Finance, Secretary Housing, Managing Director PPRA, representatives of the Construction Association of Pakistan (CAP), and officials from other institutions.
Proposals discussed
Participants considered on establishing a Construction Industry Development Board (CIDB) and setting up a dedicated construction development bank. The meeting also decided on rationalising import and export policies for the construction sector, along with introducing tax reforms.
CIDB to play dual role
Ahad Cheema said the proposed board would serve a dual functions, driving sector development and also provide supervision. He said the board, comprising representatives from both the public and private sectors, would help bring construction standards in Pakistan up to international levels. He added that there was complete agreement between the government and CAP on establishing the CIDB.
The minister added that the framework for setting up the board would soon be presented to the Prime Minister for formal approval.
Moreover, Ahad Cheema announced that the Defect Liability Period (DLP) for government projects would soon be extended from one year to three years. He said there was a clear roadmap to further extend the DLP to five years in the future.
He stressed that infrastructure should not deteriorate immediately after completion, adding that contractors must maintain high standards.
However, the federal minister stated that consultants would be made legally and financially accountable for flaws and technical errors. He said the Construction Association of Pakistan had fully supported the regulatory accountability of consultants.
He also added that setting up a construction development bank would depend on a feasibility study by the State Bank and the Pakistan Banking Association.
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