Pakistan construction sector likely to be declared as industry

While chairing a recent construction meeting, Pakistan's Prime Minister, Imran Khan, stated that a decision has been taken, in principle, to declare the construction sector as an industry and directed that all necessary requirements should be completed at the earliest for implementation of the decision so that the sector could avail the same benefits being enjoyed by other industries.

Mr Khan was of the view that promotion of construction sector is a government priority because more than 40 sectors, including the cement industry, are directly linked with it. Therefore, an increase in construction activity creates employment and economic activity in the country.

The government would provide all facilities for promotion of construction sector. The Prime Minister added and agreed to the proposal that instead of No Objection Certificate compliance with rules and regulations should be promoted in the construction sector.

On further positive development, the Association of Builder and Developers (ABAD) is in touch with the government for an economic relief package.

To date the government has kept rates of taxes and levies on builders – the driving force behind cement demand – unchanged until next federal budget with any change in rates of taxes for developers and builders to be considered from 1 July 2020. A local research house foresees a relief package for the real estate sector Federal Budget FY21.