Govt mulls package to boost construction

The federal government is considering a broad package to revive the construction industry, with aims that include simpler regulations, more investment and stronger institutional support, according to Dawn. The proposals include setting up a Construction Industry Development Board (CIDB), studying a dedicated Construction Development Bank (CDB), rationalising import and export rules and offering targeted tax reforms for the sector.

A meeting chaired by Economic Affairs Minister Ahad Cheema on Saturday reviewed regulatory, operational and financial reforms for the sector. The proposed CIDB would combine sector development with a regulatory role over standards, contractors and consultants, and would include public and private representatives. Cheema said the framework will go to the prime minister for final approval after the Construction Association of Pakistan (CAP) backed the need for the board.

Public development projects will soon see their Defect Liability Period raised from one year to three years, with a plan to reach five years later. Consultants would also face legal and financial accountability for design flaws or technical errors. On banking, the finance ministry will hold detailed talks with the State Bank of Pakistan and the Pakistan Banks Association over guarantee hurdles and the CDB request, and any decision will depend on their feedback and financial feasibility.