PM announces incentive package for construction industry to revive economy amid coronavirus

ISLAMABAD: Prime Minister Imran Khan on Friday announced an incentive package for the construction industry, including subsidy on five and 10 marla houses, allocation of 5 percent banks' finance for house-building and a one-window operation to facilitate builders.

Chairing the first meeting of newly established National Coordination Committee on Housing here, the prime minister said the decisions were taken to boost the construction industry for economic revival in times of the coronavirus pandemic.

He said for the construction of affordable houses for middle and lower classes under the Naya Pakistan Housing Project, an amount of Rs. 30 billion had been allocated as subsidy for its initial phase.

He said the mark-up on bank loans for houses up to five and 10 marlas would be five and seven percent respectively.

Imran Khan said the world over, loans for the housing sector were easily available, while the process in Pakistan was quite cumbersome.

He said the new committee would also play its role in removing hiccups in the process relating to the State Bank of Pakistan and commercial banks on house-building finance.

He said in consultation with all the provinces, the Federal Government had decided to cut down the number of no objection certificates (NOCs) required for the construction industry.

He said a web portal would provide a one-window operation in that regard while certain time-limits had also been put in place to ensure there were no extraordinary delays in the process.

The prime minister said the objective of the committee was to provide low-cost housing to the people, who could not afford a house of their own.

It would also simplify the laws related to the construction industry and for easing of loan disbursement.

He said the construction industry in Pakistan was facing numerous problems and hurdles, and added that the committee would remove the bottlenecks and ensure that the industry could move ahead at full speed, without any hitch.

Imran Khan said due to the coronavirus pandemic, there was an overall global recession and a large percentage of people had been rendered homeless.

He said the government was focusing on the construction industry as it would create economic opportunities to hundreds and thousands of the poorest of the poor.

The prime minister said the concessions for the construction industry were only for a limited period.

The government would not ask for the source of funding.Under its international obligations, Pakistan could provide incentives to investors for the construction industry till December 31.

He urged the investors, builders and people to avail the opportunity as it was an unprecedented step taken by any government in Pakistan.