ABAD demands reduction in prices of construction material

Author: Aslam Shah

Association of Builders and Developers of Pakistan (ABAD) Chairman Muhammad Hassan Bakshiurged Prime Minister (PM) Imran Khan to reduce the prices of cement, steel bars, tiles and other construction material to ensure the success of ‘Naya Pakistan Housing Scheme’, a project under which 5 million (m) houses would be constructed.

He also requested PM Khan to appoint a leading personality from private construction sector as the head of PM Task Force for this scheme.

Bakshi was addressing a press conference at ABAD House on Monday along with ABAD senior vice chairman Anwar, vice chairman Abdul Karim Adhia, Southern Region chairman Ibrahim Habib and other relevant officials.

He said that ABAD had supported Prime Minister’s initiative of Naya Pakistan Housing scheme wholeheartedly and the association would enhance strength and membership of ABAD for early implementation of this scheme.

He said that the State Bank of Pakistan (SBP) was carving out a financing model under which the SBP will land 50 percent of the total cost of a house to commercial banks at the rate of one percent mark up and commercial banks will provide the house toallottees at the rate of 4 to 5 percent and another 20 percent will be borne by allottees.

He said that only members of ABAD will be allowed to work for the PM Housing scheme. However; he hurriedly clarified that ABAD was not for establishing a monopoly but it wanted to bring all builders and developers under one umbrella. He said that other builders and developers from private sector will also be provided with one window facility.

The ABAD chairman demanded that the government restore Fixed Tax Regime (FTR) for the construction sector. He said that members of ABAD will construct and hand over possession of houses within one and half year with minimal profit under “Naya Pakistan Housing scheme.”

He also urged the government not to run this housing scheme like CPEC and give equal opportunities to local investors and builders and foreign investors.

Published in Daily Times, October 16th 2018.

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