Tuesday Jan 25, 2022
ISLAMABAD: Prime Minister Imran Khan on Tuesday said that the government was facilitating the construction of affordable housing units for the salaried and low-income groups by providing subsidies and waiving off interest rates on house financing.
Addressing the inauguration ceremony of the Pakistan Housing Authority (PHA) Officer's Residencia, Kurri Road, the premier acknowledged the efforts of the ministry of housing to complete the "decade-old stalled housing projects for the government employees", stressing that the authorities should also ensure timely completion of further 88,000 housing units.
PM Imran Khan further added that the construction industry can lift the country’s economy, highlighting the dependence of 30 more allied industries which can progress if the construction sectors booms.
He said that the completion of housing projects for the government employees was of significance as they "can not purchase and own their houses."
Highlighting the efforts of his government for the development of the construction sector, he said: "In the past, the people did not have an option for seeking bank loans for the construction of their homes on easy instalments due to pending foreclosure law before the courts.
"However, now the law has been finalised by the courts and now it has helped smoothen the procedure for seeking bank credits."
PM Imran Khan underlined that for the first time in the country’s history, housing projects worth Rs124 billion through bank loans had been approved and loans worth Rs40 billion have already been released by the banks.
"The banking mortgage law would now enable the people to divert the payments of their rented houses to pay easy instalments for the construction of their own residences," he said, adding that contrary to mortgage financing in the US and Europe which stood around 80%, in Pakistan, it was less than 1% of the GDP.
Referring to the global price hike due to the pandemic, the premier said that the World Bank’s report has confirmed Pakistan's 5.37% growth rate.
He further added that due to the boom in the construction activities, about a 40-60% increase in the income of the labour class has been noted.
Moreover, an amount worth Rs1,400 billion was earned by the farmers during the last year due to the record production of five bumper crops.
The World Bank report — based on four indicators — showed that poverty has been reduced, he opined, adding that during the COVID-19 pandemic, they had not shut down the construction industry.
The country’s exports had surged whereas record remittances and tax collection was witnessed, he underlined.
The premier said that the future of the country has been set in the right direction as indicated by Bloomberg, which acknowledged that Pakistan’s economy was put on a high trajectory.
He expressed confidence that the economic situation of the country would improve further.