LAHORE: The Constructors Association of Pakistan (CAP) has warned that development work across the country could grind to a halt following a sharp increase in petroleum prices, unless immediate relief measures are introduced.
The warning came during an emergency meeting of CAP’s executive committee, chaired by Chairperson Syed Afzalur Rehman and attended by senior leadership and members. Participants expressed deep concern over rising cost pressures in the construction sector, describing the situation as unsustainable.
The meeting reviewed the impact of higher fuel prices on construction activity, noting that the surge has significantly raised operational costs, from the transportation of materials to the use of machinery.
Chief Adviser CAP Engineer Arshad Dad briefed participants on engagement with the government. He said that, on the directives of Prime Minister Shehbaz Sharif, three sub-committees had been formed to address industry concerns, led by the managing director of the Public Procurement Regulatory Authority (PPRA), the minister of state for finance and the Ministry of Planning.
He also shared updates on ongoing negotiations, citing some progress in discussions with the PPRA. However, industry representatives stressed that these efforts must translate into timely and practical relief for contractors struggling to sustain operations.
Concerns over transparency in public procurement also surfaced during the meeting. Former CAP chairperson Engineer Kamal Nasir Khan alleged that under the e-procurement (e-PAD) system, contractors’ bid rates were being leaked ahead of tender openings, while bills of quantities (BOQs) were being altered. Participants strongly condemned the alleged irregularities and called for an immediate investigation and legal action.
Pakistan Engineering Council Governing Body member Engineer Imran Khan Cheema outlined proposed changes to contractor enrolment and renewal procedures. Senior Vice Chairman CAP Chaudhry Ahmed Habib also shared views on engaging with the Punjab government to steer the industry out of the current crisis.
Other members, including Engineer Muhammad Azhar-ul-Islam Zafar, Engineer Shahid Rafiq, Muhammad Adnan Waheed, Parvez Khan, Malik Riaz Khan and Engineer Asad Mukhtar, presented recommendations to address the growing challenges.
At the policy level, the association unanimously called on federal and provincial governments to ensure payment of price variation on all ongoing development projects in line with inflationary trends. Participants emphasised that such adjustments are a legal right of contractors and critical for project continuity.
The association also urged the government to announce an ex gratia relief package for the construction sector, warning that without financial support many firms could face severe financial distress or closure.
Industry stakeholders said the situation remains precarious. A CAP spokesperson noted that, amid historically high inflation, completing development projects without government intervention has become “extremely difficult, if not impossible”.
