Commerce Desk
KARACHI: President Pakistan Businessmen and Intellectuals Forum and All Karachi Industrial Alliance, Chairman National Business Group Pakistan and Chairman Policy Advisory Board FPCCI Mian Zahid Hussain has welcomed Prime Minister Mian Shehbaz Sharif’s announcement of a comprehensive development package for Pakistan’s construction sector, terming it a potential game changer for economic growth, investment and employment.
He said the proposed establishment of a Construction Industry Development Board (CIDB), possible Construction Development Bank (CDB), trade policy improvements and tax reforms were timely initiatives. He added that extending the defect liability period for public-sector projects could improve quality and accountability.
According to the Pakistan Economic Survey 2025-26, the construction sector grew by 5.7 percent during FY2025-26. Mian Zahid Hussain noted that construction has linkages with more than 40 allied industries, including cement, steel, glass, ceramics, cables, electrical equipment, paints, sanitary products, transport and engineering services.
He said total cement dispatches increased 7.2 percent to 50.5 million tonnes during FY2025-26, while domestic cement sales rose 9.5 percent to 41.507 million tonnes. In July 2026, total cement dispatches increased 6.02 percent year-on-year to 4.476 million tonnes, while domestic sales surged 17.3 percent to 3.771 million tonnes.
However, he expressed concern over a 30 percent decline in cement exports to 705,341 tonnes, saying high business costs must be addressed to improve Pakistan’s international competitiveness.
Mian Zahid Hussain stressed that the current recovery should be converted into long-term structural reforms rather than temporary incentives. With the Public Sector Development Programme standing at around Rs1 trillion for FY2026-27, he said greater private-sector participation in housing, commercial development and infrastructure was essential.
He expressed confidence that the proposed CIDB would function as an effective public-private platform, focusing on national standards, faster approvals, contractor accountability and dispute resolution rather than adding another layer of bureaucracy.
He also called for specialised construction financing in collaboration with the State Bank of Pakistan and commercial banks, along with a digital one-window approval system, rationalisation of taxes, faster land and building approvals, digitisation of land records and reduced duties on construction materials.
He said incentives should prioritise affordable housing, vertical urban development, green and earthquake-resistant buildings, locally manufactured construction materials and modern construction technologies.
Mian Zahid Hussain said Pakistan should view construction not merely as a real-estate activity but as a multiplier for industrial growth. Effective implementation of the proposed reforms, he added, could stimulate investment, employment, innovation and activity across dozens of allied industries while strengthening overall economic growth.
