Rs. 1 trillion worth of construction projects delayed by legal disputes

Pakistan Engineering Council Chairman calls for the establishment of ADR centers to tackle stalled projects and boost economic progress

ISLAMABAD: Over Rs. 1 trillion worth of construction projects in Pakistan remain stalled due to ongoing legal disputes, underscoring the urgent need for a well-organized dispute resolution system within the construction industry. This was highlighted by Pakistan Engineering Council (PEC) Chairman Engr Waseem Nazir during the International Alternate Dispute Resolution (ADR) Conference 2025, organized by the Lahore High Court Bar Association on Thursday.

In his address, Nazir stressed the importance of capacity building, legislative support, and a solid resolution framework to address commercial conflicts efficiently. He noted that Pakistan’s construction sector is hindered by a lack of a dispute resolution culture, with social pressures and systemic barriers pushing contractors, consultants, and clients into prolonged legal battles. These delays not only waste public funds but also stifle infrastructure development and economic progress.

To address these challenges, Nazir advocated for strategic interventions involving regulators, industry stakeholders, and the judiciary. He revealed that the PEC is collaborating with the judiciary to establish ADR centers, designed to make dispute resolution a core element of the construction industry. These centers, staffed with expert professionals, will mediate disputes in large-scale projects, facilitate hearings with all stakeholders, and provide expert opinions to ensure swift resolutions.

Ensuring both national and international investor confidence is a priority, and Nazir emphasized that these ADR centers will play a pivotal role in achieving this goal. The conference also saw participation from prominent judiciary figures, including Supreme Court Senior Judge Justice Mansoor Ali Shah, former DG Judicial Academy Justice (R) Sardar Ahmad Naeem, and Justices from Lahore High Court, among others.

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