Pakistan may face a housing backlog of 100 million in the next 20 years against the backlog of 61.9 million at present, if the construction industry is neglected continuously.
Munir Sultan, Co-chairman, Standing Committee on Housing & Construction Industry of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) told Business Recorder that the World Bank had reported backlog of 61.9 million against the backlog of 4.27 million in 1998.
"If the construction industry is further ignored by the government the shortfall shall keep adding to the accumulation of housing," he said. "I believe that by the passage of 20 years the further shortfall of 10 million houses will be added to the present backlog."
He said that the construction had been neglected and no incentive was given to this job providing industry and delay in regularisation of the frozen lands in Karachi, which was basic raw material for the construction industry.
Sultan said that fiscal year 2004-2005 GDP growth rate of 8.6 percent was realised first time in the history whereas the target was 6.8 percent and the construction industry's growth registered at 18.6 percent unexpectedly on a very higher side due to which the overall economic growth was 8.6 percent. But as per the economic survey report for the year 2005-2006 the GDP rate was 6.6 percent against the target of 7 percent, the construction industry achieved growth of 9.2 percent despite all odds.
It is less than phenomenal growth of 18.6 percent, but higher than the target of 7.5 percent and better than the performances in last 15 years, he said. The State Bank of Pakistan has acknowledged in its annual report that construction was the only sector to have achieved higher than targeted growth, he said.
He said that main impediment in growing housing industry was prolonged frozen lands matter, which should be finalised on emergent basis where the amount of Rs 130 billion from the poor masses has been stuck-up in Karachi. He also suggested that the government should direct the financial institutions to provide house construction loans instead of house purchase loans.
About 600,000 to 700,000 people added to Karachi population annually, which increased the number of katchi abadis from 471 in 1984 to 1,482 till June 2005. "These katchi abadis have encroached land of government and semi-government worth billions of rupees," he said, adding due to this the crime rate had been increased besides getting illegal water and power connections.
He said the present government under the leadership of President General Pervez Musharraf and Prime Minister Shaukat Aziz had taken serious note of housing backlog and accepted the importance of housing and development, which was internationally recognised an important pillar of measuring country's economy.
He said the government had attracted foreign developers and some projects had been finalised in the area of Defence Housing Authority and Coastal Line, which was still beyond the purchasing power of the lower and middle-income families. He suggested that there was need of satellite town and low-cost housing on emergent basis to meet the housing backlog.
He also demanded of the government that the allotment of lands was being banned for long and it should be realloted to genuine builders. He mentioned that the government was sincere to develop the industry but bureaucracy had created obstacles for preventing the growth, which would directly hit 72 other related industries. If the industry collapsed it would result in mass unemployment, he said and adding that millions of people were employed in the allied industries.
Comments
Comments are closed.