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Friday, February 16, 2024

PM Khan allots houses, flats to poor laborers, widows on low mortgage

Imran Khan spoke to the people saying that the government has revived a 25-year-old project and it will help people realize their dream of owning their own houses. This had been made possible via mortgage being allowed in Pakistan.

PM Imran Khan on 18th March (today) PM participated in distribution ceremony of 1,500 houses, flats among laborers in Islamabad.

Talking to the people present and applauding the work of his team, PM Khan said, “you have revived a 25-year-old project that was lying dormant, and you have realized it for people today.” He said that it is a big achievement, as for 25 years no one had thought about working for the lower strata of the society, giving houses to them.

PM Khan said this program represents the thought behind Naya Pakistan. PM khan said that poor people used to pay rent for living in the houses, but now the same rent will act as a mortgage payment, which over twenty years period would be owned by the tenants.

Read More: ECC approves revised subsidy structure and eligibility for NPHP

He said that it took the government two years to get the ‘foreclosure law’ approved by the courts, as this is the law that allows for people to get loans for houses on mortgage from the banks. He said that this led to the delay of two years.

Applauding SBP, he said 380 billion kept for mortgages by them.

3 lac rupees of subsidy is given per house/flat, and the interest rate would be flat for twenty years for these houses. Over the next 20 years, people would pay mortgages and own the house after the period.

According to the PM, in the next phase, 1500 more flats would be distributed among people. He said that the government is not giving the houses for free, but the houses are being granted on mortgages, where rent is substituted by loan payments.

He also praised the construction industry as the high performer of the country, attributing the safety of the economy during the pandemic to the industry. PM also said that the construction industry alone can raise our GDP and give employment to people, enabling the country to repay our excess burden of debts.

On Wednesday, the 17th of March, a meeting of the Economic Coordination Committee (ECC) chaired by Finance Minister Dr. Abdul Hafeez Sheikh approved the stipulated revised eligibility criteria, subsidy structure, and public-private partnership for the government’s Naya Pakistan Housing Programme (NPHP).

The ECC also approved the payment mechanism for cost subsidy against 100,000 housing units to be constructed in phase one by the Naya Pakistan Housing and Development Authority (NAPHDA) by the end of the year.

The chairman NAPHDA, Lt. General (R) Anwar Ali Hyder presented a revised eligibility criterion for the selection of applicants, modalities, and other incentives in accordance with the special incentive package for Housing and Construction sector, announced by the Prime Minister in July 2020.

The committee urged the development authority to facilitate access to housing finance at affordable rates for expanding housing ownership in accordance with the vision of the PM. This will allow for low- and middle-income groups to avail this housing facility.

The ECC also approved the summary by the NAPHDA which sought permission to enter into negotiated procurement agreements for the construction of low-cost housing through the proposed public-private partnerships.

The revision, as recommended by the State Bank of Pakistan, in key parameters of mark-up subsidy for housing finance was also approved. This would ensure greater participation and greater access to quality housing at an affordable price, with a relatively relaxed eligibility criterion.

It must be remembered that the public and private sectors of the country have offered 189 sites to build low-cost housing units to provide affordable accommodation for the lower middle class under Naya Pakistan Housing Programme (NPHP).

According to the Ministry of Housing and Works, out of the total of 189, 57 sites have been offered by private sectors to build around 104,912 houses and the remaining 132 sites have been offered by the government sectors which are being evaluated.

The incumbent government intends to build a total of five million housing units to cater to the needs of the homeless and low-income people in the country.

Read More: NPHP offered 189 sites to build low cost housing units

According to an officer at the ministry, 6769 houses have been completed under various schemes.