KARACHI: The Deputy Governor of State Bank, Kazi Abdul Muktadir, appreciated the role of ABAD and termed the development of housing industry as essential for development of the economy and assured ABAD that their proposals will be included in their report for presenting the same to government so that steps for the development of housing sector as an industry may be decided.
He presented these ideas in a seminar on Low Cost House in ABAD House organized by the Association of Builders & Developers of Pakistan in collaboration with Government of Pakistan. He said that the Housing Policy of 2001 could not be implemented but expressed confidence that the new Housing Policy for 2013-2018 will yield good result.
The Housing industry plays an important role in the development of any country. House is the basic necessity of every human being. Increase in population and pressure on urbanization, requires establishing modern settlements with all basic facilities and to carry out these tasks, builders and developers are required. Without town planning, irregular settlements get established based Builders and developers have the capability to provide houses with good designing and complete security. The Government must provide maximum facilities to builders and developers in Housing Sector. State Bank is in favour of house financing and attention is being given to more financing for this sector. The Seminar was also addressed by the Chairman ABAD, Mohsin Sheikhani, Muhammad Irfan Director General, Ministry of Housing, Government of Pakistan, Housing Expert Zaigham Mehmood Rizvi, Senior Vice chairman ABAD Saleem Kassim Patel, Dr. Noman Ahmed, Professor of NED University, Shoaib Ismail and Syed Sayef Hussain, MD House Building Finance Corporation.
Director General of Ministry of Housing, Muhammad Irfan said that Nawaz Sharif government had planned to build 500,000 houses, 50,000 people will be given loans on 8% interest. Land is not available free anywhere. We are planning to build 10,000 houses this year
That 5 marla land and one lac rupees will be given so that builder will start construction. If this is guaranteed then builders are ready to carry on the work the one lac rupees will be returned in one year and cost of land will be returned in 10 years. Government projects are generally awarded through tendering process to builders and developers but are delayed due to disputes and legal wrangling. Government is usually not responsible for these disputes. He added that ABAD is doing an excellent job in this matter.
Chairman ABAD Mohsin Sheikhani said the construction of 5 lac housing units is a big challenge for the government. In the last 60 years projects announced by the Government did not give encouraging results. The housing requirement in the country is over 70 lac units. The possession of units in the projects cannot be handed over without availability of utility services. It is very positive sign that Government is now making decisions with mutual discussions.
Senior Vice Chairman ABAD Saleem Kassim Patel said the Vision 2025 concept by the Government is a very positive project. The Government wants to construct 5 lac housing units in five years and give to low income group of the country. The backlog has risen to 70 lac housing units and the Government is only financing 500 individuals. Restructuring of HBFC is the most important thing which the Government should do. The government should also convince private sector banks to increase the housing finance.
MD HBFC Sayef Hussain said that during last 60 years financing of Rs. 51 billion was provided to 460,000 cases. out of which Rs 72 billion were recovered. It is important that government should revamp HBFC and to achieve this goal, ABAD should use its good offices.
International Housing Expert Zaigham Rizvi said the Katchi Abadies now comprise 55% of the total population of Karachi. There is a demand of 2000 housing units per day. He added that HBFC and 27 banks collectively finance the housing sector by Rs. 4 billion only in comparison to Rs. 200 billion by HDFC of India.