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.
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.
Aim of construction package is to revive the economy
He added that due to the adverse impact of the coronavirus on the country’s economy, the government had obtained relief from international obligations till Dec 31 this year and people investing in the construction industry would not be asked about their sources of income.
This facility would last only till Dec 31, 2020 and everyone should avail it, the prime minister said while addressing the nation after chairing the first meeting of the National Coordination Committee on Housing, Construction and Development.
PM Khan asked the construction industry and investors to “take advantage of the opportunity”, as the government tried to mitigate the economic impact of the Covid-19 outbreak. He said that on the construction of each house the government would provide a subsidy of Rs300,000. “This means a subsidy of Rs0.3 million each will be given on the first 100,000 houses constructed,” he added.
Susidised interest rates will help decrease cost of business
He said the mark-up on bank loans for houses up to five and 10 marlas would be five and seven percent respectively.
“Further, those people who borrow from banks to construct their homes will be given a subsidised interest rate. The interest rate for a five-marla house will be five percent and for a 10-marla house it will be seven percent,” he said.
Prime Minister Khan said that after consulting the provinces, the government had decided to reduce the number of NOCs [no objection certificates] and made a one-window operation in all the provinces. “There will also be a time limit within which approvals would have to be granted by the relevant authority,” he added.
He said taxes had also been reduced in the provinces and now investors should take advantage of this short window of opportunity.
The prime minister said the purpose of the National Coordination Committee on Housing, Construction, and Development was to remove obstacles in the way of construction industry and for this purpose, the provinces were also taken on board. The premier will himself preside over the committee’s meeting every week.