ISLAMABAD: The federal government is finalising a comprehensive development package to overhaul Pakistan’s construction sector, centred on the creation of a Construction Industry Development Board (CIDB) and an extension of the Defect Liability Period (DLP) from one year to three years.
Federal Minister for Economic Affairs and Establishment Division Senator Ahad Khan Cheema chaired a high-level meeting attended by Minister of State for Finance Bilal Azhar Kayani, Federal Secretary for Housing and Works Captain (R) Mahmood, the Managing Director of the Public Procurement Regulatory Authority, and representatives of the Construction Association of Pakistan (CAP).
The proposed CIDB will combine development and regulatory functions, overseeing industry standards, contractors, and consultants through a joint public-private platform. Officials confirmed plans to raise the DLP further to five years over time, aiming to hold contractors accountable for long-term structural quality.
For the first time, consultants will face legal and financial accountability for design flaws under the new framework, a gap CAP representatives said had long undermined project quality, since only contractors currently face default penalties.
Officials are also evaluating a dedicated Construction Development Bank (CDB) to address financing and guarantee bottlenecks. Cheema has directed the Ministry of State for Finance to begin formal talks with the State Bank of Pakistan and the Pakistan Banks Association to assess its feasibility.
The broader package includes tax incentives and revised import-export policies designed to encourage technology adoption and strengthen local construction capacity. The CIDB framework will be submitted to the Prime Minister for final approval.
Cheema said the reforms aim to ensure public infrastructure investment is not compromised by substandard execution, positioning Pakistan’s construction sector to meet international regulatory and quality benchmarks.
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