Construction sector: Govt to set up CIDB to oversee standards and regulation

The federal government plans to create a Construction Industry Development Board (CIDB) that would regulate standards across the construction sector, Business Recorder reported, citing a statement issued on Saturday. The proposal surfaced at a high-level meeting chaired by Senator Ahad Cheema, Federal Minister for Economic Affairs, which reviewed regulatory, operational and financial reforms for the sector. Attendees included Bilal Azhar Kayani, Minister of State for Finance, and representatives of the Construction Association of Pakistan (CAP).

The government is weighing a wider package that also covers a possible Construction Development Bank, changes to import and export rules, and targeted tax measures. Cheema said the proposed board would combine development and regulatory roles, and that consultants would fall under direct oversight and face legal and financial responsibility for design errors. The framework will go up to the prime minister for sign-off, and CAP fully backs the need for the body.

The defect liability period for public development projects will also be lengthened to three years, up from one, with five years planned later. On financing, Bilal Azhar Kayani has been directed to hold formal talks with the State Bank of Pakistan and the Pakistan Banks Association on banking hurdles in securing guarantees, and any Construction Development Bank decision will rest on their feedback.