Sindh govt promises lands on concessional rates

KARACHI: The country’s most populous city Karachi needs more than two million housing units to meet the residential demand of its population, provincial chief minister said on Monday, assuring the stakeholders of lands on concessional rates to build low-cost houses.

Sindh Chief Minister Syed Murad Ali Shah said Karachi is facing a shortage of around 2.5 million housing units.

“In order to resolve the issue the provincial government will discuss the measures with stakeholders to speed up the work on low cost housing projects,” Shah said, addressing the three-day Association of Builders and Developers (Abad) International Expo Pakistan. The event was held from 12 to 14 August. 

He said land will be provided on concessional rates to promote low-cost housing projects. Limited availability of bank credit is a barricade to such projects, he added. “Providing low cost housing is a top priority of the provincial government.” Chief Minister Shah further said the provincial government will make laws to overcome the issue of old and dangerous constructions.

He said unplanned construction in the city has created a lot of infrastructure problems.  “The water and sewerage problems are outcomes of unplanned construction, (which) has been challenged in the courts,” he added.

Shah said the provincial government allocated Rs40-45 billion for the development projects in Karachi during the last year and similar amount was earmarked for the current fiscal year of 2017/18. The provincial government allocated an additional eight billion rupees for mega development projects across the city.

The government would spend additional Rs12 billion on such projects during the current fiscal year. These projects would be completed on fast track basis, he added.

Mohsin Sheikhani, chairman of Abad said the association is striving to construct low-cost and affordable housing in Pakistan through public-private partnership.  “Pakistan is facing shortage of 12 million housing units worth $1.80 billion and some 0.25 million housing units are added to this shortage every year,” Sheikhani said in a statement.

He said the exhibition is aimed to provide an international level platform where the consumers, buyers and industry representatives can directly meet, interact, and do business with the fraternity. 

Abad chairman, addressing the exhibition, said 23 companies from 21 countries attended the event. Agreements worth Rs500 billion were signed during the previous exhibition. Abad was successful in bringing Rs350 billion investments out of the total amount in real estate business, he added. Sheikhani acknowledged that law and order situation is improving and building confidence of investors. He, however, urged the chief minister to upgrade the provincial registration and approval mechanisms to expedite construction and development projects.