Construction sector: Govt to set up CIDB to oversee standards and regulation

The Pakistani government is set to create the Construction Industry Development Board (CIDB) to oversee standards, enforce quality control, and provide strategic oversight for the nation's construction industry. This move was discussed at a high-level meeting chaired by Federal Minister for Economic Affairs and Establishment Division Senator Ahad Cheema, with officials from the Ministry of Finance, Housing and Works, Public Procurement Regulatory Authority, the Construction Association of Pakistan, and senior government representatives in attendance.

The CIDB will have a dual role, overseeing the overall development of the construction sector and enforcing industry standards, contractors, and consultants. Once established, the board will serve as a unified platform for elevating national standards, with the federal government expected to submit the framework for final approval by the prime minister.

The government is also considering a broader development package to address financial and policy bottlenecks, including a Construction Development Bank, revised import and export policies, and targeted tax reforms to encourage modern technologies and local construction capacity. The government plans to extend the Defect Liability Period from one to three years, and potentially five years in the future, to ensure public infrastructure remains durable and structurally sound.

Additionally, the new regulatory framework will extend oversight to consultants, holding them accountable for design flaws and technical errors, and the government has directed the Federal Minister for Finance to discuss the establishment of the CDB with the State Bank of Pakistan and the Pakistan Banks Association.