Govt Plans New Regulatory Authorities for Construction Industry Oversight

ISLAMABAD: The government is actively considering the establishment of two regulatory authorities aimed at enhancing oversight within the construction industry, alongside introducing a three-year defect liability period for major construction projects across the country.

During an exploratory meeting chaired by Economic Affairs Minister Ahad Cheema, key stakeholders discussed the proposed reforms, including the contentious financial threshold for the defect liability period. The construction sector advocates for a minimum threshold of Rs20 billion, while government representatives are pushing for a lower limit, indicating a significant divergence in perspectives.

This initiative is part of broader efforts to improve project delivery and tackle persistent challenges faced by the construction industry, which is crucial for economic growth and infrastructure development in Pakistan. The proposed Construction Industry Development Authority (CIDA) Bill was a focal point of the discussions, with Cheema emphasizing the need for thorough evaluation of whether to create a single regulatory body or two distinct entities.

Looking ahead, the government plans to convene further meetings to refine these proposals and address the differing views between the private sector and government officials. The outcomes of these discussions could reshape the regulatory landscape of the construction industry, impacting future projects and investments.