Lahore | ReNews National Desk

Punjab’s Provincial Development Working Party (PDWP) has approved a Rs 18.786 billion scheme associated with the Nawaz Sharif Medical District in Lahore, advancing a healthcare development whose wider plans combine specialised hospitals with transport infrastructure, commercial facilities and public spaces.
The approval was granted during the PDWP’s 11th meeting of the current financial year on October 27, chaired by Punjab Planning and Development Board Chairman Dr Naeem Rauf.

The project also has a substantial land-use dimension. Media's June 2026 budget coverage located the wider medical district on Lahore’s southwestern outskirts near Pine Avenue and LDA City, describing a pedestrian-friendly campus extending over more than 1,500 kanals. This places the development within an expanding urban corridor where hospital access, utilities and surrounding land uses will be important to its functioning.

Earlier planning details reported in February identified two mixed-use commercial zones measuring 28.89 kanals and 28.69 kanals, a combined 57.58 kanals. The reported layout also included a biodiversity park, a 22.87-kanal helipad and a 32.38-kanal gas station. These figures concern the earlier district plan; the latest approval report does not establish whether those allocations have subsequently changed.

Connectivity forms another significant part of the proposed land development. The earlier plan envisaged a Civic Avenue linking hospitals, a 250-foot-wide Sunset Avenue, direct access to Lahore Ring Road, and 53.99 kanals reserved for pedestrian crossings, bridges and canal-side walkways.

Together, these elements indicate a planned healthcare precinct with supporting infrastructure extending beyond individual hospital buildings.
From an urban development perspective, concentrating medical institutions in this location could generate demand for patient accommodation, pharmacies, transport, and other supporting services.

That remains a potential consequence of implementation, rather than a confirmed increase in surrounding property prices.
The latest approval report does not specify fresh land acquisition, ownership transfers, compensation arrangements or the parcel boundaries attached to the Rs 18.786 billion scheme. It also provides no scheme-specific completion date. Those details will be necessary to establish the precise land footprint and delivery schedule of the newly approved works.

Islamabad | ReNews Pakistan

Federal Board Approves SEZ Status for 6,409-Acre Karachi Industrial Park
The project will use Pakistan Steel Mills land near Port Qasim to attract manufacturing investment, but t
Islamabad | ReNews Pakistan
The federal government has approved Special Economic Zone (SEZ) status for the 6,409-acre Karachi Industrial Park (KIP), planned on Pakistan Steel Mills land near Port Qasim. The decision gives the project a formal investment framework, while its development will depend on the provision of infrastructure and the arrival of investors.
The Board of Approvals for Special Economic Zones approved the application at its 11th meeting on October 23, 2026. Finance Minister Senator Muhammad Aurangzeb chaired the meeting.
The government aims to attract local and foreign manufacturers to the site, with a focus on export-oriented production, value addition, technology transfer and employment. Its location near Port Qasim could support access to shipping routes and imported inputs.

The immediate challenge is turning the designation into an operational industrial estate. The approval announcement did not specify a construction schedule, utility delivery dates, financing arrangements for the full site or confirmed investors.
Earlier planning envisaged development in phases. The initial concept covered 1,500 acres, while a 500-acre block—estimated to cost Rs 7.40 billion—was approved by the Central Development Working Party in February 2025. The latest SEZ decision covers the wider 6,409-acre area; it does not, by itself, establish that the entire site is ready for development.

At the same meeting, the board approved general criteria for government-funded provision of essential infrastructure to eligible privately developed SEZs. Under the Special Economic Zones Act, 2012, support may include roads, electricity, gas and water up to a zone’s designated zero point, subject to case-by-case consideration.
The board also approved a land lease policy for public-sector SEZs and industrial estates in Punjab. The policy is intended to lower upfront land costs and encourage longer-term industrial investment.

The Special Investment Facilitation Council has supported the Karachi project as part of broader investment and industrial development efforts. The Finance Ministry’s announcement, however, did not identify direct IMF financing or a specific IMF investment approval for the park. The project’s progress will therefore hinge on implementation: infrastructure delivery, clear land and lease arrangements, investor commitments and a predictable policy framework.

Islamabad | ReNews Pakistan

Pakistan will require approximately US$18 billion, equivalent to around Rs 5 trillion, in federal financing over the next decade to develop strategic water infrastructure, improve irrigation efficiency and strengthen protection against floods, according to a new Planning Commission report.

The National Water Security Framework, prepared under the URAAN Pakistan initiative, outlines major reforms in reservoir development, irrigation management, groundwater regulation and flood protection to address the country's growing water security challenges.

The report sets a target of increasing water-use efficiency from the existing 40% to 70% by 2029. It also aims to raise water availability at farm gates from 58.3 million acre-feet (MAF) to 79 MAF during the same period.

According to the Planning Commission, Pakistan's current usable water storage capacity stands at approximately 15.318 MAF, which the government aims to increase to 23.54 MAF by 2029.

The report warns that existing live storage capacity represents only about 11% of the annual flow of the Indus River system, leaving the country vulnerable to seasonal water shortages and extreme weather events.

Ongoing projects under the Public Sector Development Programme (PSDP) are expected to add approximately 9.821 MAF of water storage capacity.

Meanwhile, proposed strategic projects, including the Akhori Off-Channel Storage Dam, Shyok Dam and Skardu Dam, could collectively provide another 14.5 MAF of storage capacity.

The Planning Commission estimates that approximately US$18 billion in federal financing will be required over the next ten years for major reservoirs, flood management infrastructure, canal modernisation and other strategic water development projects.

To improve transparency and accountability in water distribution, the report proposes establishing a Water System Integrator function under the Indus River System Authority (IRSA).

The proposed system would strengthen monitoring and coordination of water allocation from rivers through irrigation networks to agricultural fields.

Agriculture accounts for approximately 95% of Pakistan's freshwater withdrawals, while overall irrigation water-use efficiency remains around 40%.

The framework recommends accelerating the adoption of drip and sprinkler irrigation systems through financial incentives, reforming irrigation water charges, commonly known as abiana, and adjusting cropping patterns to improve water productivity.

It also identifies approximately 20.58 million acres of potentially suitable agricultural land outside the formal irrigation network, highlighting opportunities to expand agricultural production if adequate water and infrastructure become available.

Groundwater depletion is another major concern identified in the report.

According to the Planning Commission, groundwater levels in Punjab are declining by approximately 0.5 to one metre annually, while the Indus Basin Aquifer has been identified as the world's second most overstressed groundwater system.

The report warns that the increasing use of solar-powered agricultural tube wells may accelerate groundwater extraction because the additional energy cost of pumping water is extremely low.

It recommends linking subsidies for solar-powered tube wells to groundwater registration and sustainable extraction limits to discourage excessive pumping.

Flood preparedness also features prominently in the proposed reforms.

The report highlights a sharp reduction in flood early-warning time at Marala Headworks, from approximately 40 hours in 2014 to just 5.5 hours in 2025.

To address increasing flood risks, the Planning Commission recommends implementing the National Flood Protection Plan-IV, introducing national legislation for glacier protection and monitoring, and updating flood protection designs using the latest hydrological data.

The framework also proposes recycling at least 25% of urban wastewater to reduce pressure on freshwater resources.

According to the report, approximately 53% of monitored urban water sources were found unsafe for human consumption, underscoring the need for improved water treatment and sanitation infrastructure.

The Planning Commission has recommended treating water security as part of Pakistan's national security agenda, emphasising that water scarcity, declining groundwater reserves and climate-related disasters require coordinated national action.

The report concludes that achieving the 2029 targets will depend on sustained investment, stronger institutional coordination, regulatory reforms and efficient management of available water resources.

However, the estimated Rs 5 trillion represents a projected federal financing requirement over the next decade rather than funding already approved or fully secured.

Islamabad | ReNews Pakistan

The federal government has begun considering a series of reforms aimed at addressing challenges facing the construction industry, ensuring the timely completion of development projects and protecting contractors’ financial interests.

The proposals include establishing a new institution for the construction industry, paying contractors returns on retention money and introducing an effective mechanism for resolving disputes in development projects. The proposals were reviewed at a meeting chaired by Federal Minister for Economic Affairs and the Establishment Division Senator Ahad Cheema in Islamabad.

The meeting was attended by Minister of State for Finance Bilal Azhar Kayani, Housing Secretary Capt. (retd) Muhammad Mahmood, a member of the Planning Commission, the managing director of the Public Procurement Regulatory Authority (PPRA), representatives of the Constructors Association of Pakistan (CAP) and other senior officials.

Participants discussed the proposed Construction Industry Development Authority (CIDA) bill. Cheema called for a detailed assessment of whether a single institution would be more effective in regulating and developing the construction industry, or whether two separate bodies should be established, with one responsible for regulation and the other for industry development and promotion.

He directed the relevant officials, the minister of state for finance and industry representatives to hold further consultations on the proposed institutional structure.
A key issue discussed at the meeting was retention money—funds withheld from contractors’ bills as security under construction contracts.
These funds are retained for a specified period to ensure that any defects in construction work are rectified. Participants proposed placing the money in profit-bearing bank accounts so that contractors could receive both the principal amount and the accrued returns when the retention period ends.

Cheema directed officials to undertake further consultations to develop a workable mechanism for the proposal. The meeting also considered introducing special boards to prevent disputes and ensure their timely resolution during public development projects. CAP proposed applying the dispute avoidance and adjudication mechanism to projects worth Rs 20 billion or more. Cheema, however, said the financial threshold should be lower so that more development projects could benefit from the system. He called for further consultations to determine an appropriate threshold.

Participants also stressed the importance of using the standards of the International Federation of Consulting Engineers (FIDIC) as a key reference for construction contracts and project management. Cheema directed PPRA to begin work on setting a defects liability period of at least three years, or longer, for major development projects. During this period, the contractor concerned would be responsible for rectifying defects in accordance with the terms of the contract.
A phased extension of the proposed framework to smaller projects will also be considered.

The reforms discussed at the meeting aim to improve financial transparency, strengthen contractors’ confidence, enhance construction quality and ensure the timely resolution of disputes. However, no announcement was made regarding final approval of the proposals or the immediate implementation of a new legal framework.

Karachi | ReNews Pakistan

The Association of Builders and Developers of Pakistan (ABAD) has expressed concern over the State Bank of Pakistan’s decision to raise the policy rate from 11.5 per cent to 12 per cent, warning that higher borrowing costs could increase construction expenses and discourage fresh investment in real estate.
The central bank’s Monetary Policy Committee decided to increase the policy rate by 50 basis points at its meeting in Karachi on October 26, with the change taking effect on October 27. Nine members of the 10-member committee supported the decision.
According to the State Bank, tensions in the Middle East, elevated global energy prices and growing inflation risks necessitated the increase to maintain price stability.

Responding to the decision on October 28, ABAD Chairman Muhammad Hanif Gohar said the rate increase would compound the difficulties facing an already struggling construction industry. He said higher financing costs would make construction projects more expensive, potentially making it harder for developers to launch new projects and attract investment.

Gohar warned that the costs of cement, steel reinforcement bars and other building materials could face further pressure, potentially increasing the cost of residential and commercial construction. He said the effects of difficulties in the construction sector would extend beyond builders and developers, affecting employment, business activity and the wider economy.

The ABAD chairman urged the State Bank to reverse the latest increase and reduce borrowing costs to support a recovery in economic activity.
While an increase in the policy rate can affect financing costs nationwide, its actual impact on individual housing loans and construction projects will depend on the lending agreements and interest rate terms offered by the banks concerned.