PM Imran Khan’s construction package to revive economic activity, say experts

LAHORE: Prime Minister Imran Khan’s Construction Incentive Package focused on tax rebates and incentives in the construction sector with an intention to ensure a quick revival of economic activities besides encourages investors to invest in low-cost housing schemes.

These views were expressed by the participants in a webinar on PM’s Construction Incentive Package – an opportunity to increase the employment in the country amidst Covid-19 pandemic organised by Iqbal Institute of Policy Studies.

The session was attended by seasoned experts from various different fields of life, including Lahore Development Authority Vice-Chairman SM Imran, Association of Builders and Developers (ABAD) Chairman Akber Sheikh, President IIPS Advisory Board Lt-Gen Haroon Aslam (R), Naya Pakistan former chairman Zaigham Mahmood, IIPS Chairman Shafiq Akbar, SMEDA Provincial Chief (Punjab) Javed Afzal and Pakistan Council for Architects and Town Planners (PCATP) Chairman Kaleem Siddiqui. The experts gave their insights on how the construction incentive package would help in shaping the urban fabric of the country and the effect of tax rebates and incentives on construction related activities. They discussed the views of builders and developers on the construction package. The participants demanded the government devise long-term policies for real estate sector so that the industry could really help to boost economic growth. Sharing thoughts of economic situation of the country and role of real estate, LDA vice-chairman Sheikh Muhammad Imran said the PM’s key focus was on ease of doing business and LDA was working on a mission to empower the private sector by removing the barriers for growth. He said that policies needed to be revised to create better business environment.

“Our key stakeholders are town planners, builders, architects, real estate investors and government also and together we are working hard to end nepotism and build better reputation of the government institutions where a common citizen feels respectable and things can be done on merit without any hassle”, he said.

Shafiq Akbar said that since the inception of Pakistan, this is the first time that any government has realised the true potential of the real estate sector. The government departments are unable to make master plans of all cities because they have limited human and financial resources. This is a great opportunity for private companies to aid the government in this regard, he added.

Naya Pakistan former chairman Zaigham Mahmood said that energy-efficient housing would create impact only when it would be implemented on the existing stock of the buildings which are large in number. There needs to be a policy in this regard which we have not yet framed."

President of IIPS advisory board Lt-Gen Haroon Aslam said the role of academia was very important in making construction industry successful. Academia can be made an active feeder for the construction industry to bring research-based and innovative solutions for critical problems in various areas. The facilitation in waiving off unnecessary taxes will help in creating economic stability and change the mindset of the private stakeholders in a positive manner, he asserted.

Provincial SMEDA Chief Punjab Javed Fazal said that supporting SME sector was key to achieve economic growth. He highlighted that SME sector's main issue was access to finance which was also a key issue of construction sector. He added that SME was a major component of real estate industry and government needs to remove bottlenecks that hinder the SMEs growth due regulatory challenges.

He hoped that construction industry development board that has been created under the PM's package would be playing a vital role by taking all the stakeholders on board for their recommendations to improve business environment and bringing more success through ease of doing business.

Chairman ABAD (North) Akbar Sheikh said that Imran Khan by giving this incentive package to construction industry had shifted the burden on private sector to play its role in growth and regulatory agencies had to support the private sector. He said that construction industry is the second largest after agriculture and contributes approximately 10-13 percent of total GDP.