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Tax incentives, necessary to promote green constructionBreaking

March 17, 2025

To address climatic impacts, green constructions are direly needed in Pakistan. Luring tax incentives are crucial to popularise this trend in the country, opined Senator Sherry Rehman, the Chairperson of Senate’s Standing Committee on Climate Change, while addressing a high-level consultative webinar, organized by the Sustainable Development Policy Institute (SDPI) here on Monday. In her keynote address, she highlighted the solid waste crisis in major metropolitan areas and its severe impact on the Indus river. She said “The informal sector is already practicing circularity by recycling and reusing materials, but we need formal sector integration into national policies”. She said that a dedicated force must be established within the Environmental Protection Agency (EPA) to implement building codes and zero-waste strategies.

Dr Abid Qaiyum Suleri, the Executive Director of SDPI, emphasized that this consultation was a groundbreaking step in linking the construction sector with circularity and zero-emission goals. He said that unsustainable resource extraction and high carbon emissions were not only harming the environment but also contributing to air pollution such as smog. The CEO of National Disaster Risk Management Fund (NDRMF), Bilal Anwar, emphasized the construction sector’s critical role in the economy, noting its past as a key employment generator.

Akbar Mahmood Zaidi, Resident Engineer at ACES 18, highlighted that globally, the construction sector contributes 30-40% of greenhouse gas emissions, with Pakistan producing 25-30% of construction waste, most of which ends up in landfills. He warned that Islamabad’s unchecked resource extraction has led to the depletion of Margalla Hills National Park’s natural reserves, including sand, cement, and clean water, all essential for construction.

Kamil Khan Mumtaz, CEO of Kamil Khan Mumtaz Architects, pointed out that industrial development, including construction, is a major driver of the climate crisis. He called upon policymakers to decide between business-as-usual or imposing strict circular economy regulations. Dr. Saeed Ahmad from NED University underscored the housing deficit, stating that Pakistan requires 10 million housing units in urban centers using low-carbon construction materials. Ahad Nazir, Director of Private Sector Engagement at SDPI, suggested creating a used-materials database alongside a certification system to enhance the resilience of the construction sector.

UNOPS Development Sector Specialist, Nauman Amin, pointed out that infrastructure accounts for 79% of greenhouse gas emissions and 88% of climate adaptation costs. He urged policymakers to integrate sustainability into the taxation framework to drive green construction initiatives.

Credit: Independent News Pakistan (INP)