Mian Zahid Hussain, President Pakistan Businessmen and Intellectuals Forum and All Karachi Industrial Alliance, Chairman National Business Group Pakistan, Chairman Policy Advisory Board FPCCI, and Former Provincial Minister Information Technology, has welcomed Prime Minister Mian Shehbaz Sharif’s announcement of a comprehensive development package for Pakistan’s construction sector. He said that effective and timely reforms can transform Pakistan’s construction sector into a major engine of economic growth, employment generation and industrial activity. He further said that the government’s proposals for the establishment of a Construction Industry Development Board (CIDB), the possible establishment of a Construction Development Bank (CDB), improvement in trade policies and tax reforms are timely and important. The proposed framework also includes extending the defect liability period to improve the quality and accountability of public-sector projects.
Mian Zahid Hussain said that the construction sector is moving towards recovery. According to the Pakistan Economic Survey 2025-26, the construction sector grew by 5.7 percent during FY2025-26. This progress is particularly important because construction has direct linkages with more than 40 allied and related industries, including cement, steel, glass, ceramics, cables, electrical equipment, paints, sanitary products, transport and engineering services. He said cement sales data also confirms the improvement in domestic construction activity. During FY2025-26, total cement dispatches increased by 7.2 percent to 50.5 million tonnes, compared with 47.1 million tonnes in the previous year. Domestic cement sales increased even faster, rising 9.5 percent to 41.507 million tonnes. The positive trend continued into the new fiscal year, as total cement dispatches reached 4.476 million tonnes in July 2026, up 6.02 percent year-on-year. Domestic cement sales recorded a significant 17.3 percent increase to 3.771 million tonnes, compared with 3.215 million tonnes in July 2025. Mian Zahid Hussain expressed concern over a 30 percent decline in cement exports to 705,341 tonnes, highlighting the high cost of doing business and the need to improve the global competitiveness of Pakistan’s cement industry.
Mian Zahid Hussain said that the current recovery in the construction sector should not be limited to temporary incentives but should be converted into long-term structural reforms. With the federal Public Sector Development Programme at around Rs1 trillion for FY2026-27, greater private-sector participation in housing, commercial development and infrastructure will be essential. He appreciated Prime Minister Mian Muhammad Shehbaz Sharif’s focus on construction-sector reforms and expressed confidence that the proposed CIDB would be developed as a genuine public-private platform rather than another bureaucratic institution. It should play an effective role in setting national standards, accelerating approvals, improving contractor accountability and resolving industry disputes.
Mian Zahid Hussain said that a specialised construction financing system or institution should be established in collaboration with the State Bank of Pakistan and commercial banks to address the gap in long-term, low-cost financing. He also called for a digital one-window approval system, improvements in tax policy, faster land and building approvals, digitisation of land records and reduction in duties on construction materials. He said government incentives should be directed towards affordable housing, vertical urban development, green buildings, earthquake-proof construction, locally produced construction materials and the adoption of modern technologies.
Mian Zahid Hussain said that Pakistan must now view the construction sector not merely as a real estate activity but as a multiplier of industrial growth. With construction growing by 5.7 percent and domestic cement demand increasing significantly, timely reforms can strengthen employment generation, investment, innovation, dozens of allied industries, and overall economic growth.
