The federal government is set to require contractors to remain responsible for defects in public development projects for three years after completion under a new construction reform package aimed at improving the quality and lifespan of public infrastructure.

Federal Minister for Economic Affairs Ahad Khan Cheema announced that the standard defect liability period will be extended from the current one year to three years, with plans to eventually increase it to five years. He said the measure is intended to ensure that roads, buildings, and other government-funded infrastructure do not deteriorate soon after they are completed.

According to the minister, the longer liability period will require contractors and executing agencies to maintain higher construction standards, as they will remain responsible for fixing defects for a longer time.

Cheema also announced that consultants will, for the first time, be brought under the regulatory oversight of the Construction Industry Development Board (CIDB). The new framework will make them legally and financially accountable for design mistakes and technical shortcomings.

He noted that while contractors can already face penalties for poor performance, there is currently no similar accountability mechanism for consultants. Representatives of the Consulting Association of Pakistan (CAP) backed the proposal, saying consultant oversight is necessary to improve design quality and safeguard public funds.

Separately, the minister directed Minister of State for Finance Bilal Azhar Kayani to begin consultations with the State Bank of Pakistan (SBP) and the Pakistan Banks Association (PBA) to address difficulties faced by construction firms in obtaining financial and performance guarantees.

The discussions will also assess the feasibility of establishing a dedicated Construction Development Bank. Any decision on creating the institution will depend on the recommendations and financial assessment provided by the SBP and the PBA.