Winning accolades for initiating a flagship programme

ISLAMABAD: Prime Minister Imran Khan has won accolades on way to the accomplishment of yet another herculean task to build five million houses for the homeless poor in the country.

He stood tall among his contemporaries by leaping forward in materializing a dream which his opponents could just think of as builder community in the country eulogized him for removing hiccups to make Naya Pakistan Housing Program, a success.

After the relentless efforts, he put in during last two years, the program is now on the ground and builders are jubilation and praising him for giving them a level playing field to lend a hand in the government efforts for the construction of five million houses.

Series of meetings and deliberations personally chaired by the Prime Minister coupled with his unflinching commitment paved the way for his dream to come true.

These efforts made the builder community eulogize this program with hopes that the target of five million houses was doable.

“The incentives offered by the government to housing sector would help achieve the target of constructing five million houses and creating 15 million jobs,”?said Mohsin Sheikhani, Chairman Association of Builders and Developers of Pakistan (ABAD).

Welcoming incentive package, he said, it was the PTI government that declared the housing sector as an industry for the first time in 70 years history of the country.

If initially, the government starts with one million houses, it would create 2.5 million jobs and revive 40 to 72 allied industries.

The package would be very useful for the construction industry,? he said.

He said that Covid-19 had slowed down economic growth across the world but hoped, ?brisk advancement on this project would help bring an economic turnaround.

The construction industry is the backbone of our economy and its progress would help overcome housing units shortage, result in the growth of allied industries and jobs creation.

Naya Pakistan Housing and Development Authority (NAPHDA) Chairman Lt Gen (R) Anwar Ali Hyder has expressed hope that simplified documentation process and other measures to ensure ease of doing business would help attract more investors to the housing and construction industry.He said the investors, investing in housing and construction industry till December 31 would not be asked for their income source.

“Earlier, it was difficult for the builders and developers to get approvals, but now the government has eased the ‘’Approvals Regime’’ to facilitate the housing construction sector.“He also mentioned the government’s vision of incentivizing the construction industry for the benefit of multiple industries, overall economic activity and jobs creation.

The government desires the builders and developers to take full advantage of this package and start their projects before December 31. Abid Qayyum Sulehri, an economist and Executive Director SDPI, saw the construction sector as a future driving force for the economy and appreciated incentives for the construction industry that would finally benefit the poor.

Builders and real estate agents have also seen this package as a major initiative for the revival of the sector as they hoped the government incentives would definitely restore the confidence of the local and foreign investors.

Commenting on the government’s initiative, a leading property developer and businessman Ejaz Gohar was of the view that it was the first plan, which would make it affordable for low and middle-income people to build houses with low rate mortgage financing.

The commercial banks would allocate five per cent of their portfolio for the construction activities, he said and noted that some Rs20 trillion was circulating in the informal unregistered economy and now was the opportunity for the people to get a huge amount of money declared by investing in the real estate sector by December 31, 2020.?Now low-income people can build a house of 5-marla with mortgage financing at 5 per cent.

Ejaz said the mortgage financing was started in the United States 82 years back to kick-start its economy and Pakistan was far behind in terms of the home mortgage financing as compared to the developed world.

After the announcement of the special package, the State Bank of Pakistan (SBP) decided to set a mandatory target for banks to extend mortgage loans and financing for developers and builders.

Managing Director and Chief Executive Officer Pakistan Mortgage Refinance Company (PMRC) Mudassir Khan said PMRC was providing refinancing facility backed by funding from the World Bank and the government.

Mudassir said they have made long-term affordable housing finance a reality now with disbursements reaching Rs15 billion to 11 partner banks and financial institutions through their conventional and innovative Islamic refinancing products.

PMRC had also introduced a risk-sharing facility as a trustee for the government to encourage banks to lend for low-cost housing.

It had jointly with the insurance industry created a new conventional and Takaful product for low-income housing under the Naya Pakistan Program.

The PTI government deserves credit as not only it did not shy away from the challenges and remained focused on the task but also elicited participation from the private sector in a positive manner,” said Muhammad Ejaz, Director, Arif Habib Corporation Limited.

He said the government undertook an elaborate process of consultation and engaged all relevant stakeholders.

Instead of rushing to force any half-baked plan, it maintained steady and gradual progress towards developing an effective system through creating and reforming institutions.

At the same time, he said, the creation of ease-of-doing-business and reforms in the foreclosure laws would enable institutional funding support, which was extremely positive.

Muhammad Ejaz, Director Arif Habib Corporation further said, ?Key factor is an investor.

Giving them confidence by giving the construction sector the status of the industry would help motivate them to invest more in this sector.

We are grateful to the PTI government for these initiatives,? said Chief Executive Officer of Makeen Marketing Pvt.

Limited Hassan Talal, a builder associate of Capital Smart City, Bahria Town, Blue World City, Lahore Smart City, and other projects. “Rationalization of taxation would also have a positive impact. NPHP would also help the boost construction industry,” he noted.

Muhammad Ahsan, a builder and interior designer saw the incentive package as a ?well in time endeavour? of the government for putting the construction sector back on track and the revival of the economy.The boom in the construction sector would provide business to 40 sectors and generate employment.If the pace continues the target of constructing five million houses would be achievable,? he noted.