Construction industry, hoarding/smuggling: Laws required to be implemented in letter and spirit

Passage of new ordinances for the promotion of construction industry and controlling hoarding and smuggling in the country will not solve the problem unless implemented in letter and spirit.

This was the crux of background discussions with legal fraternity and those engaged in the construction industry while talking to Business Recorder.

The federal government on Friday promulgated an ordinance for construction industry and the federal cabinet ratified another ordinance for controlling hoarding and smuggling of basic food items and goods.

Arif Jeeva, former chairman of Association of Builders and Developers (ABAD), said that government should immediately constitute Construction Industry Development Board (CIDB) for effective implementation of the incentives announced in the Ordinance for construction industry. It is mandatory for builders and developers to register on Federal Board of Revenue (FBR) 'IRIS' web portal and subsequently the CIDB was to be the competent board for approval of the cases.

Prime Minister had directed for formation of CIDB but government has not yet announced the constitution of the Board. In order to make the provisions of the Ordinance effective, the government should announce the board immediately to start the process, he added. As per the Prime Minister, project approval would be within 45 days of registration, but this has not been mentioned anywhere in the Ordinance, Jeeva stated.

As per the 18th Amendment, the provinces' revenue boards are allowed to collect sales tax. Punjab and Khyber Pakhtunkhwa have announced sales tax concessions as per the direction of federal government, but Sindh and Balouchistan have not issued sales tax concessions for the construction industry, Jeeva added.

"To make development authorities more effective and friendly like Lahore Development Authorities (LDA), a private member should be inducted in the board of iCapital Development Authority (CDA), Rawalpindi Development Authority (RDA), Gwadar Development Authority (GDA), etc.," former chairman ABAD added. As per the ordinance against hoarding, those found guilty of hoarding will be slapped with a three-year imprisonment sentence and a heavy fine. Kamran Murtaza former vice-chairman said: "We have laws for controlling hoarding and smuggling but the basic issue is of implementation. Nothing will happen unless the laws are implemented in letter and spirit."

The British, who ruled the subcontinent for two centuries studied everything and made several laws which are very comprehensive. The only issue is that fines and punishments were not severe enough for a deterrence. There was need for an amendment rather than framing new laws, he said.

Pir Kaleem, former President Supreme Court Bar Association said instead of promulgating laws through ordinances these should be legislated through parliament. The laws should be result-oriented.

He said this law will be limited to Islamabad, adding if a man is found involved in hoarding outside the jurisdiction of federal capital then no body can check him. If a law is made in good faith then it should be made for the whole country. The NAB Ordinance has been used to target opponents and to defame politicians, he added.

Aftab Ahmed Bajwa, former General Secretary Supreme Court Bar Association, stated that laws for hoarding and smuggling may not be effective as they are bailable offences. However while in the past police used to arrest the manager and 'munshi' under new law the owner will also be arrested and hoarding material would be confiscated and the owner will be sent to jail for 3 years. This is a very good step, adding that in this activity (hoarding) farmers do not get anything. Aftab Bajwa said unless strict action is taken against the hoarders and smugglers people will continue to suffer adding that not much good will come out of the ordinance unless they are implemented in letter and spirit.