Urgent Reforms Needed in Pakistan’s Construction Sector to Align with Climate Goals

Islamabad – Industry experts and policymakers have emphasized the need for immediate reforms in Pakistan’s construction sector to ensure alignment with climate change goals. They advocate for tax incentives promoting sustainable construction practices and stricter regulations for industries failing to meet environmental standards. These insights were shared during a recent webinar organized by the Sustainable Development Policy Institute (SDPI).

Climate Policy Integration in the Construction Industry

Senator Sherry Rehman, Chairperson of the Senate’s Standing Committee on Climate Change, stressed the importance of integrating construction sector concerns into Pakistan’s national climate policies. She proposed tax relief for eco-friendly projects and higher levies on non-compliant industries. Additionally, she called for a dedicated Environmental Protection Agency (EPA) unit to enforce green building codes and implement zero-waste strategies in urban development.

“The informal sector is already practicing circularity by recycling materials, but we need the formal sector to be part of a national sustainability framework,” Rehman stated. She also highlighted the worsening solid waste crisis in major cities and its detrimental impact on the Indus River, now ranked among the world’s most polluted rivers.

The Urgency of Sustainable Construction Practices

Dr. Abid Qaiyum Suleri, Executive Director of SDPI, pointed out that unsustainable construction activities contribute significantly to environmental degradation, worsening air quality, and increased carbon emissions. He emphasized the necessity of a taxation roadmap that promotes green construction.

“With rapid urbanization, Pakistan faces several challenges, including climate migration, weak enforcement of building regulations, and unsustainable resource extraction,” he noted.

Bilal Anwar, CEO of the National Disaster Risk Management Fund, highlighted the construction sector’s vital economic role, emphasizing that despite its contribution to employment, the industry is currently stagnant and requires urgent policy interventions.

Addressing Environmental Concerns & Resource Depletion

Environmental experts raised concerns about the extensive resource depletion caused by unregulated construction. Akbar Mahmood Zaidi, a senior engineer at ACES 18, highlighted that the construction industry contributes to nearly 30-40% of global greenhouse gas emissions, with 25-30% of construction waste ending up in landfills in Pakistan. Unchecked resource extraction, particularly in regions like Margalla Hills National Park, is depleting natural reserves at an alarming rate.

Renowned architect Kamil Khan Mumtaz called for immediate action, warning that unregulated industrial development, including construction, is a major driver of the climate crisis. He urged policymakers to transition towards a circular economy by implementing stricter environmental regulations.

Policy Recommendations for a Greener Future

To address the country’s ongoing housing deficit, Dr. Saeed Ahmad from NED University stressed the need for 10 million new housing units in urban centers. He referenced successful models like Khuda Ki Basti and government-backed initiatives such as the Naya Pakistan Housing Programme and Sindh Peoples Housing for Flood Affectees (SPHF), advocating for the use of low-carbon materials in future developments.

Ahad Nazir, Director of Private Sector Engagement at SDPI, proposed the development of a used-materials database and certification system to enhance sustainability efforts. “Without strong incentives, Pakistan’s transition to green construction will remain a challenge,” he noted.

Nauman Amin, a development specialist at UNOPS, highlighted the importance of integrating sustainability into Pakistan’s taxation framework to drive eco-friendly construction initiatives.

The Road Ahead for Sustainable Construction in Pakistan

The webinar concluded with a consensus that the government must take immediate steps to regulate construction practices, introduce sustainability incentives, and enforce strict environmental laws. Experts agreed that a well-defined framework will ensure long-term economic stability while protecting Pakistan’s natural resources for future generations.

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