The World Bank (WB) has agreed to prepare the working paper and feasibility reports for developing new sectors and affordable housing units for low-paid income groups in the Federal Capital, sources informed Business Recorder here on Wednesday.
The consent came during a meeting of four-member World Bank delegation and Capital Development Authority Chairman Kamran Lashari here on Wednesday at the CDA Headquarters.
The delegation headed by Robbin Rajick from the WB Washington included Autandebroregur, WB financial sector specialist, Sanivel Munzele, financial specialist and Oliver Hessler, senior housing expert.
All the CDA members were also present on the occasion.
Housing finance reforms in Pakistan and WB talks with the government and State Bank of Pakistan (SBP) came under discussion during the meeting.
A WB project team is currently visiting Pakistan for a more focused consultation with the SBP, Finance Ministry, CDA and other stakeholders.
During the meeting, the sources said that the CDA chairman expressed his desire for affordable housing finance project that would address roadblocks in developing stable and vibrant housing finance market in Islamabad.
He informed the World Bank delegation that Islamabad was being developed in accordance with the provisions of Islamabad Master Plan and more than 46 sectors were needed to meet the housing requirements here.
During the past 40 years the CDA has developed 15 residential sectors by acquiring land from private owners, he said, adding that 75,000 housing units and flats have been developed at the residential sites.
Lashari apprised the WB team that the Capital was facing shortage of estimated 35,000 housing units, which was being addressed through development of additional sectors comprising 35,000 plots.
Private housing societies have been allowed to develop housing schemes in two specific zones where they were expected to develop sites for 10,000 housing units to cater to the future residential requirements of Islamabad, he said.
Lashari said that the CDA acquired the land under CDA Ordinance 1960 on fixed rates and cost of development would be subsequently recovered by the sale of plots to the private sector through open auction and from government departments at a fixed rate.
The private housing developers purchase land at a negotiated price and disposed of housing units at the ongoing market rate.
The CDA chairman said that the civic body was experiencing various constraints owing to scarcity of funds as Rs 3.5 to Rs 4 billion was needed for acquisition of land and development infrastructure for 5,000-6,000 housing units in the Capital.
Shortage of funds was a major constraint in floating additional residential sectors, he said.
The team was informed that the availability of funds for the construction of houses by the individuals was again a major constraint as the House Building Finance Corporation (HBFC) is the principal source for such loans, but availability of finances with the HBFC was also not sufficient.
The Capital Development Authority has suggested that more funds should be allocated for house building at subsidised rates.