Govt to set up Construction Industry Development Board, dedicated bank in sweeping reform push

Profit by Pakistan Today reported that Pakistan plans to launch a Construction Industry Development Board to set standards and guide the sector. It is part of a wider package under study that may include a dedicated Construction Development Bank, simpler trade rules and targeted tax relief. The proposals came from a meeting led by Ahad Cheema, Federal Minister for Economic Affairs, to review regulatory, operational and financial changes.

A Saturday statement named participants such as Bilal Azhar Kayani, Minister of State for Finance, and Construction Association of Pakistan representatives. Cheema said the CIDB would both promote growth and regulate contractors and consultants. The government intends to raise the standard Defect Liability Period for public projects from one year to three, eventually reaching five years. Consultants would face direct oversight and legal and financial liability for flawed designs, which the industry body fully supported.

On financing, the industry group had flagged difficulty obtaining performance guarantees from banks and sought a specialised lender. Cheema asked Kayani to begin talks with the State Bank and the banking association, and said any bank would hinge on their input and feasibility review. He concluded that an independent board combining development and regulatory roles could sharpen accountability and align standards with international benchmarks.