Senator advocates tax incentives for `green construction projects`
By Ikram Junaidi
2025-03-18
ISLAMABAD: Senate Standing Committee on Climate Change Chairperson Senator Sherry Rehman stressed the need to integrate construction industry concerns into national climate policies on Monday and proposed tax incentives for green construction projects and higher taxes on non-compliant sectors.
She was speaking at a consultative webinar organised by the Sustainable Development Policy Institute (SDPI). In her keynote address, Senator Sherry Rehman highlighted the solid waste crisis in metropolitan areas and its severe impact on the Indus River, the second-most polluted river globally. `The informal sector is already practicing circularity by recycling and reusing materials, but we need formal sector integration into national policies,` she stated.
She also called for a dedicated force within the Environmental Protection Agency (EPA) to implement building codes and zero-waste strategies.
Dr Abid Suleri, the SDP executive director, empha-sised that the 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.
`We must align Pakistan`s greening efforts in the construction industry with a taxation roadmap that incentivises sustainability,` he concluded. Dr Suleri said with the rapidly increasing urbanisation rate, Pakistan was confronted with various challenges such as climate migration, poor enforcement of building codes,and alack ofsustainable practices.
National Disaster Risk Management Fund CEO Bilal Anwar emphasised the construction sector`s critical role in the economy, noting its past as a key employment generator.
However, he pointed out that the industry was currently at a standstill, requiring urgent negotiations and reforms.
`Despite its significance, the sector has largely evaded discussions on climate change, sustainability, and green construction practices,` he remarked, stressing the need to incorporate modern, eco-friendly materials.
Akbar Mahmood Zaidi, resident engineer at ACES 18, highlighted that globally, the construction sector contributed 30-40pc of greenhouse gas emissions, with Pakistan, producing 25-30pc of construction waste, most of which ended up in landfills. He warned that Islamabad`s unchecked resource extraction 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, was 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 required 10 million housing units in urban centres.
He highlighted past sustainable housing models like `Khuda Ki Basti` and government initiatives, such as the Naya Pakistan Housing Programme and the Sindh Peoples Housing for Flood Affectees (SPHF), while advocating for their replication using low-carbon construction materials.
UNOPS Development Sector Specialist Nauman Amin pointed out that infrastructure accounted for 79pc of greenhouse gas emissions and 88pc of climate adaptation costs. He urged policymakers to integrate sustainability into the taxation framework to drive green construction initiatives.