Govt plans to extend Defect Liability Period to three years for public projects

August 17, 2026 (MLN): The government is set to extend the standard Defect Liability Period for public development projects from the current one year to three years, with a clear roadmap for a further extension to five years, aimed at making public infrastructure cost-effective and highly durable.

The decision was shared by Minister for Economic Affairs and Establishment Division Senator Ahad Khan Cheema, who chaired a meeting in Islamabad to review major regulatory, operational, and financial reforms in the construction sector, said a press release issued.

The minister reiterated the government's commitment to ensuring civil infrastructure does not deteriorate shortly after completion, stressing durability as a core objective of the reform drive.

The meeting was also informed that the government is weighing a comprehensive construction industry development package, which includes plans to establish a Construction Industry Development Board and evaluate the setting up of a dedicated Construction Development Bank.

Furthermore, rationalizing import and export policies, and introduce targeted tax reforms for the construction sector are also key parts that are being looked into.

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