HomeNationalTax incentives for green construction a must to promote sustainability: Sherry

Tax incentives for green construction a must to promote sustainability: Sherry

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ISLAMABAD, Mar 17 (APP):Senator Sherry Rehman, the Chairperson of Senate’s Standing Committee on Climate Change, stressed the need for integrating construction industry concerns into national climate policies and proposed tax incentives for green construction projects and higher taxes on non-compliant sectors.
She was speaking at a high-level consultative webinar, organized by the Sustainable Development Policy Institute (SDPI) here on Monday, said a press release.
In her keynote address, Senator Sherry Rehman highlighted the solid waste crisis in major 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 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. “We must align Pakistan’s greening efforts in the construction industry with a taxation roadmap that incentivizes sustainability,” he concluded.
Dr Suleri said with the rapidly increasing urbanization rate, Pakistan is confronted with various challenges such as climate migration, poor enforcement of building codes, and a lack of sustainable practices.
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.
However, he pointed out that the industry is 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 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.
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), advocating for their replication 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. “Without incentives, a transition to sustainability will be challenging,” he noted.
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.
The consultation emphasized the need for a whole-of-government and whole-of-society approach to drive a green transformation in the construction sector, making it climate-resilient and sustainable for future generations.
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