LAHORE: The Constructors Association of Pakistan (CAP) on Monday warned of a countrywide boycott of development projects if the government fails to provide urgent financial relief as surging petroleum prices continue to squeeze the construction sector.
The warning came during an emergency meeting of CAP’s Executive Committee chaired by Syed Afzal-ur-Rehman where participants expressed grave concern over the sharp increase in fuel prices and its cascading impact on project costs, cash flows, and overall industry viability.
The association’s leadership unanimously demanded that federal and provincial governments immediately ensure payment of price variation on all ongoing projects in line with inflation, terming it a constitutional and legal right of contractors. In addition, the CAP called for the announcement of an ex-gratia package to prevent widespread defaults and potential bankruptcies in the sector.
Chief Advisor CAP, Engineer Arshad Dad, informed participants that three high-level committees have been constituted on the directives of Prime Minister Mian Shahbaz Sharif to address the issue. These include committees led by the Managing Director of the Public Procurement Regulatory Authority (PPRA), the Minister of State for Finance, and the Ministry of Planning. He noted that negotiations with the government and procurement authorities have shown some positive momentum.
However, concerns over transparency in the tendering process were also raised. Former CAP Chairman Engineer Kamal Nasir Khan alleged premature leakage of contractors’ rates in tenders under the EPADS system and unauthorized alterations in Bills of Quantities (BOQ), calling such practices a serious breach of procurement integrity. The participants strongly condemned these actions and demanded immediate legal action against those involved.
Meanwhile, Engineer Imran Khan Cheema of the Pakistan Engineering Council proposed procedural reforms in contractor registration and renewal, while Senior Vice Chairman Chaudhry Ahmed Habib emphasized the need for coordinated efforts with provincial governments, particularly Punjab, to steer the industry out of the inflationary crisis.
Other senior members, including Engineer Muhammad Azharul Islam Zafar, Engineer Shahid Rafique, Muhammad Adnan Waheed, Pervez Khan, Malik Riaz Khan, and Engineer Asad Mukhtar, also presented recommendations to mitigate the crisis.
The CAP spokesperson reiterated that without timely government intervention, the completion of ongoing and future development projects has become “not only difficult but impossible” in the current inflationary environment. He warned that failure to address the association’s demands could result in a complete shutdown of construction activities across Pakistan.
Copyright Business Recorder, 2026
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