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ISLAMABAD: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has called on the National Electric Power Regulatory Authority (Nepra) to consult industry representatives before making any changes to the Incremental Package for industrial electricity consumers. The business community has warned that revising the package without taking major industrial stakeholders into confidence could create market distortions, undermine the intended benefits of the scheme and potentially transfer additional costs to industries that do not qualify for incremental consumption incentives. In post-hearing comments submitted to Nepra on August 12, 2026, FPCCI said the regulator had already directed that the proposed changes to the Incremental Package should first be presented to and discussed with industry representatives before being brought back for approval. The federation welcomed the direction, describing meaningful stakeholder participation as essential for developing a workable electricity pricing mechanism for industrial consumers. FPCCI highlights delayed review FPCCI also raised concerns over the failure to conduct the package’s scheduled quarterly review. According to the federation, the Incremental Package was specifically designed to undergo a review every three months. However, no review had been conducted for approximately eight months. The federation said the prolonged delay had created uncertainty for industrial consumers and prevented the timely identification and correction of issues within the package. FPCCI urged Nepra to immediately carry out the overdue review and ensure that the quarterly review mechanism is followed consistently in the future. The federation argued that regular reviews were particularly important because industrial electricity consumption, production conditions and operating costs can change significantly over time. Major industry bodies seek participation FPCCI requested Nepra to formally engage leading industry organisations before the next hearing on the proposed revision. The organisations named by the federation include the Karachi Chamber of Commerce and Industry (KCCI), Korangi Association of Trade and Industry (KATI), All Pakistan Textile Mills Association (APTMA), as well as other major chambers and industrial associations. FPCCI said the participation of these organisations would allow the regulator to understand the practical challenges faced by different categories of industrial consumers. It stressed that the revised package should be based on actual industrial requirements and should not discriminate against existing consumers who are unable to qualify as incremental users. Warning against cost shifting The federation expressed concern that changes to the package could result in an unintended transfer of costs to non-incremental industrial units. FPCCI said any revised mechanism should ensure that incentives provided to additional electricity consumption do not create a financial burden for other consumers. It also called for clear safeguards to ensure that only genuine incremental electricity consumers receive the benefits of the package. According to the federation, the regulator should introduce mechanisms capable of preventing existing consumption from being presented as new or incremental demand merely to obtain preferential electricity rates. FPCCI maintained that a transparent verification system would be necessary to protect the integrity of the package and prevent potential misuse. Requests submitted to Nepra In its submission, FPCCI made a series of requests to the power regulator. The federation asked Nepra to formally consult FPCCI, KCCI, KATI, APTMA and other major industry bodies before the next hearing. It also requested the authority to provide sufficient advance notice of the date and time of any consultation, along with an online meeting link, so that FPCCI could coordinate participation by relevant chambers, associations and industrial representatives. The federation further sought a formal opportunity to present detailed recommendations on the proposed redesign of the Incremental Package. It called for safeguards restricting benefits to genuine incremental units and urged Nepra to immediately conduct the quarterly review that has remained pending for the past eight months. FPCCI also proposed making consultation with major industrial chambers and associations mandatory before any future revision or review of the Incremental Package or similar electricity pricing schemes. Invitation to power-sector institutions In a further effort to promote direct dialogue, FPCCI invited Nepra, the Power Planning and Monitoring Company (PPMC) and the Central Power Purchasing Agency-Guaranteed (CPPA-G) to visit its head office in Karachi. The federation proposed holding detailed discussions with the relevant institutions in the presence of industry representatives. FPCCI said direct engagement would provide an opportunity for all stakeholders to examine the existing mechanism, identify practical shortcomings and develop solutions based on actual operating conditions in the industrial sector. It maintained that consultation could help bridge the gap between regulatory objectives and the realities faced by industrial consumers. Industry seeks predictable power policy The dispute over the Incremental Package comes amid continued concerns among industrial consumers over electricity costs, competitiveness and the predictability of power-sector policies. For export-oriented and energy-intensive industries, electricity pricing is a major component of production costs. Business representatives have therefore repeatedly called for stable and transparent tariff mechanisms that allow companies to plan production and investment decisions. FPCCI said any changes to the Incremental Package should balance the objective of increasing electricity consumption with the need to maintain fairness among different categories of industrial consumers. The federation believes that a properly designed package, supported by regular reviews and meaningful industry consultation, could encourage additional industrial electricity consumption without imposing unintended costs on existing consumers.

ISLAMABAD: The federal government has stepped up efforts to reform Pakistan’s construction industry, with a comprehensive package under consideration to improve regulation, financing, taxation, procurement practices and construction quality. Federal Minister for Economic Affairs and Establishment Division Senator Ahad Khan Cheema chaired a high-level meeting on Saturday to review proposed reforms aimed at strengthening the construction sector and bringing national practices closer to modern standards. The meeting was attended by Minister of State for Finance Bilal Azhar Kayani, Federal Secretary for Housing and Works Captain Mahmood (retd), Managing Director of the Public Procurement Regulatory Authority (PPRA), representatives of the Construction Association of Pakistan (CAP) and senior government officials. The discussions focused on developing a coordinated policy framework capable of addressing longstanding regulatory, operational and financial challenges faced by the construction industry. Construction Industry Development Board proposed As part of the proposed reform package, the government is considering the creation of a Construction Industry Development Board (CIDB) to serve as both a development and regulatory body for the sector. The proposed board would be responsible for supporting the growth of the construction industry while also establishing and enforcing standards for contractors, consultants and other stakeholders. According to the plan discussed at the meeting, the CIDB would include representatives from both the public and private sectors, creating a platform for cooperation between government institutions and industry stakeholders. Senator Ahad Cheema said there was broad agreement between the federal government and CAP on the need for such an institution. He said the government would prepare the proposed framework and present it to the prime minister for approval. The proposed regulatory mechanism is expected to address gaps in the existing system, particularly those relating to professional standards, project quality and accountability. Consultants may face greater accountability One of the major issues discussed during the meeting was the lack of a clear accountability mechanism for consultants involved in public infrastructure projects. Cheema noted that contractors could face penalties for delays, defaults and poor performance, but similar legal and financial consequences were not adequately available for consultants when design or technical shortcomings resulted in project failures. Under the proposed CIDB framework, consultants would come under a more formal regulatory structure. The objective would be to ensure that professionals responsible for project design and technical supervision could also be held accountable for serious errors, design deficiencies or technical mistakes. CAP representatives supported the proposal, maintaining that stronger oversight of consultants would improve the quality of project designs and help safeguard public funds. Defect liability period to be extended The government is also preparing to increase the Defect Liability Period (DLP) for public development projects. At present, the standard liability period is one year. The government plans to initially extend it to three years and subsequently work towards increasing it to five years. Cheema said public infrastructure should remain durable for a considerable period after completion and should not begin deteriorating soon after being handed over. He argued that extending the liability period would create stronger incentives for contractors and executing agencies to maintain quality standards throughout construction. Under a longer liability period, contractors would remain responsible for addressing defects for an extended period, potentially discouraging the use of substandard materials or poor construction practices. The government views the proposed change as an important step towards improving the long-term value of public development spending. Construction development package under consideration The proposed construction industry development package is expected to address several financial and policy constraints currently affecting the sector. The package could include targeted tax reforms, revised import and export policies and incentives aimed at encouraging the adoption of modern construction technologies. Officials also discussed the need to strengthen domestic construction capacity by facilitating access to modern machinery, equipment, materials and technical expertise. The government believes that a more predictable policy environment could encourage greater private investment while supporting the development of local construction companies and suppliers. Proposal for Construction Development Bank Financing challenges faced by construction companies also came under discussion. CAP representatives highlighted difficulties encountered by contractors in obtaining banking facilities, particularly when arranging financial and performance guarantees required for government projects. The industry also proposed establishing a dedicated Construction Development Bank (CDB) to address the sector’s specialised financing needs. In response, Cheema directed Minister of State for Finance Bilal Azhar Kayani to consult the State Bank of Pakistan (SBP) and the Pakistan Banks Association (PBA). The feasibility of creating a dedicated construction development bank will be assessed after obtaining feedback from the central bank and commercial banking sector. Officials will also examine the financial implications and potential structure of such an institution before any decision is taken. Import and export policies to be reviewed The government is also considering changes to import and export policies affecting construction-related businesses. The proposed review is intended to facilitate access to modern technologies and equipment while simultaneously encouraging greater domestic production and development of local industrial capacity. The authorities are expected to examine existing duties, procedures and policy barriers to determine whether adjustments could help improve competitiveness without undermining domestic manufacturing. Focus on value for public money During the meeting, Cheema stressed that improving construction quality was directly linked to protecting public finances. He said the government’s objective was not simply to complete infrastructure projects but to ensure that they delivered value over their intended lifespan. The minister emphasised the importance of cost-effectiveness, durability and accountability at every stage of public construction projects. The proposed reforms, if approved, could introduce significant changes to the way construction contractors and consultants are regulated, how public projects are monitored and how construction companies access financing. The government is now expected to consolidate the proposals into a broader policy framework and seek approval for the proposed measures.

KARACHI: Sindh Chief Minister Syed Murad Ali Shah has directed the provincial Investment Department to urgently formulate a comprehensive public-private partnership (PPP) framework for transforming Keti Bandar into a modern deep-sea port and a major commercial, industrial and energy centre. The directive was issued during a meeting held at the Chief Minister’s House on Saturday, where officials discussed a broader plan to develop Sindh’s coastal belt and unlock the economic potential of the Indus Delta. The proposed project is being planned in line with the vision associated with Shaheed Mohtarma Benazir Bhutto and aims to establish Keti Bandar as an important maritime gateway connecting port operations with industrial, logistics, fisheries and energy-related activities. Integrated economic corridor planned Chairing the meeting, Chief Minister Murad Ali Shah said Keti Bandar should be developed as part of an integrated maritime and economic corridor rather than as a standalone port project. He directed the relevant departments to prepare detailed proposals covering port infrastructure, industrial estates, transportation and logistics networks, fisheries, energy facilities and tourism. The chief minister also called for a phased implementation strategy that would identify the project’s immediate, medium-term and long-term development requirements. According to the proposed plan, the Keti Bandar Integrated Corridor would become a major engine for economic activity, employment generation and investment in Sindh. The project is also expected to provide a platform for attracting domestic and foreign investors to the province’s coastal areas. PPP framework to attract private investment The Sindh government intends to develop the project through a PPP model, allowing private-sector investors to participate in financing, construction, development and operation of various components. Under the proposed framework, Keti Bandar could eventually host a deep-sea port alongside logistics and warehousing facilities, industrial zones, energy infrastructure, fisheries-related businesses and tourism projects. The government believes that bringing private capital and expertise into the development process could help accelerate infrastructure construction while reducing the immediate financial burden on the provincial government. Officials have been directed to develop an investment-oriented model that clearly identifies potential projects, financing requirements, revenue opportunities and possible areas of private-sector participation. $1 billion to $2.5 billion investment potential According to the Sindh budget 2026-27, the proposed Keti Bandar Maritime, Fisheries and Petroleum Economic Corridor has an estimated investment potential of between $1 billion and $2.5 billion. The planned corridor would include a modern fishing harbour, seafood processing and export facilities, petroleum-handling terminals, logistics infrastructure and industrial support zones. The development of seafood-processing facilities is expected to create opportunities for value addition and increase the potential for exports from Sindh’s coastal areas. Similarly, improved port and logistics infrastructure could facilitate the movement of goods and provide industries with better access to domestic and international markets. Keti Bandar as future energy gateway Chief Minister Shah has also instructed officials to explore the potential of Keti Bandar as a future energy gateway. The proposed energy infrastructure would include facilities for the import and handling of LNG, RLNG and LPG, along with other supporting infrastructure required for energy-related operations. The development of such facilities could allow Keti Bandar to play a role in meeting future energy requirements while creating opportunities for investment in storage, transportation and related industries. A feasibility study has already identified approximately 4,000 acres of land for the proposed development. Officials have been asked to incorporate the identified land into the broader planning process and determine the infrastructure requirements for different components of the corridor. Focus on coastal and industrial development The proposed project is expected to have a broader impact beyond port operations. The provincial government plans to combine maritime infrastructure with industrial development, logistics, fisheries, energy and tourism to create an integrated economic zone. The Indus Delta and surrounding coastal areas have significant potential for fisheries and other maritime activities, but inadequate infrastructure has historically limited their commercial development. The government believes that modern transport links, processing facilities, storage infrastructure and port connectivity could help unlock this potential and generate new employment opportunities for local communities. The development of tourism facilities is also being considered as part of the wider strategy, with officials tasked with identifying suitable investment opportunities along the coastal belt. Long-term economic vision The proposed Keti Bandar project forms part of Sindh’s broader ambition to strengthen its position as a maritime and logistics centre in the region. The provincial government aims to use the coastline’s strategic location to attract investment, expand trade-related infrastructure and promote industrial activity. For the plan to succeed, however, authorities will need to complete detailed feasibility studies, establish an effective PPP structure, address infrastructure and connectivity requirements and ensure that environmental and coastal considerations are incorporated into the development process. The chief minister has directed the Investment Department and other relevant agencies to move quickly on the project and prepare a comprehensive roadmap. If successfully implemented, the Keti Bandar Integrated Corridor could transform the coastal area into a major maritime gateway while creating new opportunities in port operations, logistics, fisheries, energy, manufacturing and tourism.