Claiming that Pakistan’s housing and construction market has a potential to attract $180 billion investment, the Association of Builders and Developers (ABAD) has demanded at par treatment with the Chinese investors of the China Pakistan Economic Corridor.
Talking to media at a three-day real estate expo held here, ABAD Chairman Mohsin Sheikhani said the World Bank estimates that Pakistan has a deficit of 120 million houses. The country only adds 300,000 housing units per annum as compared to annual demand of 0.6 million.
Sheikhani said, the government seriously wants to reduce this gap through affordable housing. We estimate that it will require at least an investment of $180 billion. Our proposals are with the government for the last three years, but the government has not managed to overcome the bureaucratic red tape to resolve the investment issue.
He claimed that all the local investors, who left in 2007-08 period due to the political and security reasons were back and investing in the real estate sector. He said the government was offering lucrative investment incentives to the Chinese investors, which he termed right, but demanded that the local investors should be offered similar incentives. “Chinese are making an investment of $46 billion while our investment will be $180 billion.”
He said the ABAD members from Karachi were looking eagerly for investment in Islamabad and Punjab, as the developers here have developed huge housing societies which lack quality commercial and residential construction. “We have expertise in most modern construction. It is a win-win situation for all’.
About the affordable housing policy, he said the government was given a complete set of recommendations three years back but due to different bureaucratic issues, the policy could not be finalised. He said it would help reduce the poverty and joblessness in the country. Boom in the construction industry is reflected also in the over 40 allied industries.
ABAD also signed a MoU with the House Building Finance Company to provide financing for affordable housing in the country. ABAD plans to launch a pilot project on affordable housing with 5,000 houses in the surroundings of Islamabad. It will be extended upto 100,000 units in phases. Similar schemes are also planned for the urban centers of Punjab and Khyber Pakhtunkhwa and talks are under way with the provincial governments.
More than top 150 ABAD members participated in the expo. The ABAB investors were seen making trips to some of the mega housing societies, like Bharia Town, Bahria Enclave, Gulberg, DHA, Faisal Town and Top City for discussing commercial and residential projects.
