Businessman calls for construction financing system
KARACHI: Mian Zahid Hussain, president of the Pakistan Businessmen and Intellectuals Forum and All Karachi Industrial Alliance, has said that a special construction financing system should be established to address the gap of long-term and low-cost financing. He also called for a digital one-window approval system, improvements in tax policy, faster land and building approvals, digitization of…
Karachi witnessed a call from Mian Zahid Hussain, president of the Pakistan Businessmen and Intellectuals Forum, for a dedicated construction financing system to tackle the shortage of long-term, low-cost funding. The businessman also advocated for a digital, streamlined approval system, reforms in tax policies, swifter land and building approvals, digitization of land records, and reduced duties on construction materials.
Mian Hussain, who heads the National Business Group Pakistan and the Policy Advisory Board of the FPCCI, stressed that the construction sector must be seen beyond real-estate as a catalyst for industrial growth. With construction expanding by 5.7 percent and domestic cement demand surging, timely reforms could bolster employment, investment, innovation, and numerous allied industries, ultimately driving economic growth.
He welcomed Prime Minister Shehbaz Sharif's announcement of a comprehensive development package for the construction sector, praising the proposed framework, including a Construction Industry Development Board (CIDB), a Construction Development Bank (CDB), trade policy improvements, and tax reforms. Hussain also welcomed extending the defect liability period to enhance the quality and accountability of public sector projects.
The construction sector has been on a recovery course, growing by 5.7 percent in FY2025-26, a figure underscored by cement sales data showing a 7.2 percent increase in FY2025-26, reaching 50.5 million tonnes. Domestic cement sales also rose by 17.3 percent to 4.476 million tonnes in July 2026. However, Hussain expressed concern over the 30 percent dip in cement exports to 705,341 tonnes, emphasizing the need to elevate Pakistan's cement industry's global competitiveness.
He cautioned that the current sectoral recovery should not be a fleeting incentive but a foundation for long-term structural reforms. With a federal Public Sector Development Programme budget of around Rs1 trillion for FY2026-27, greater private sector involvement in housing, commercial development, and infrastructure would be crucial.
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