Islamabad: Experts and policymakers have called for urgent reforms in Pakistan’s construction sector to align it with climate goals, emphasizing tax incentives for sustainable practices and stricter regulations for non-compliant industries. The discussion took place during a consultative webinar organized by the Sustainable Development Policy Institute (SDPI) on Monday.
Senator Sherry Rehman, Chairperson of the Senate’s Standing Committee on Climate Change, stressed the need to integrate construction industry concerns into national climate policies. She proposed tax incentives for eco-friendly projects and higher taxation on industries that fail to meet sustainability standards. Additionally, she called for a dedicated Environmental Protection Agency (EPA) unit to enforce building codes and implement zero-waste strategies.
“The informal sector is already practicing circularity by recycling and reusing materials, but we need the formal sector to be part of national policies,” Rehman said. She also highlighted the growing solid waste crisis in major cities, noting its severe impact on the Indus River, which is now among the most polluted rivers in the world.
The Urgent Need for Green Construction Dr. Abid Qaiyum Suleri, Executive Director of SDPI, pointed out that unsustainable resource extraction and high carbon emissions from the construction sector contribute to environmental degradation and worsening air quality, including smog. He emphasized that Pakistan’s green policies must include a taxation roadmap that incentivizes sustainability.
“With increasing urbanization, Pakistan faces multiple challenges, including climate migration, weak enforcement of building codes, and unsustainable construction practices,” he noted.
Bilal Anwar, CEO of the National Disaster Risk Management Fund, stressed the construction sector’s critical role in the economy. While it has been a major employment generator, he warned that the industry is currently at a standstill, requiring urgent policy interventions.
“Despite its significance, the construction sector has largely been absent from discussions on climate change and sustainability,” Anwar said, urging a shift toward modern, eco-friendly materials.
Environmental Concerns & Resource Depletion Akbar Mahmood Zaidi, Resident Engineer at ACES 18, highlighted the industry’s environmental impact, noting that construction activities contribute to 30-40% of global greenhouse gas emissions. In Pakistan, 25-30% of construction waste ends up in landfills, while unchecked resource extraction is depleting natural reserves in areas like Margalla Hills National Park.
Meanwhile, architect Kamil Khan Mumtaz called for urgent action, warning that the current trajectory of industrial development, including construction, is a major driver of the climate crisis. He urged policymakers to either continue with business as usual or implement strict circular economy regulations to mitigate environmental damage.
Policy Recommendations for Sustainable Construction Dr. Saeed Ahmad from NED University underscored the housing deficit in Pakistan, stating that urban centers require 10 million new housing units. He cited past successful models such as Khuda Ki Basti and government initiatives like the Naya Pakistan Housing Programme and the Sindh Peoples Housing for Flood Affectees (SPHF), advocating for similar projects using low-carbon materials.
Ahad Nazir, Director of Private Sector Engagement at SDPI, suggested developing a used-materials database and certification system to strengthen sustainability efforts. “Without proper incentives, transitioning to a green construction model will remain a challenge,” he noted.
Nauman Amin, a development sector specialist at UNOPS, stressed that sustainability must be integrated into Pakistan’s taxation framework to drive green construction initiatives.
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 to ensure long-term economic and ecological stability.
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