Lahore: The Constructors Association of Pakistan (CAP) has warned of a countrywide boycott of development projects if the government fails to provide immediate financial relief amid rising petroleum prices.
The warning was issued during an emergency meeting of CAP’s executive committee, where members said escalating fuel costs are sharply increasing project expenses and disrupting cash flows across the construction sector.
The association urged federal and provincial governments to ensure timely payment of price variation on all ongoing projects in line with inflation, calling it a legal entitlement of contractors. It also demanded an ex-gratia support package to prevent defaults and potential bankruptcies.
CAP officials said the government has formed three committees to address the issue, with discussions showing some progress.
However, the association also raised concerns over alleged irregularities in the tendering process, including premature disclosure of bid rates and unauthorized changes in project quantities. It called for immediate action to ensure transparency and accountability.
CAP warned that without timely intervention, the continuation of development projects could become unfeasible, potentially leading to a nationwide halt in construction activity.
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