ISLAMABAD: Prime Minister Imran Khan said that 0.1 million housing units are being constructed for low-income group and banks have received 61,000 applications for loans of Rs226 billion.

Addressing a function after visiting a construction site at “Frash Town”, here on Friday, the premier said that of the Rs226 billion, Rs90 billion had been approved and Rs24 billion disbursed for construction of housing units for the low-income and poor group.

However, he regretted that the governments in the past had neither helped low-income people to build houses nor paid attention on housing finance by the banks.

He said the people who had money could easily build their house but it was very difficult for the middle- and low-income class to think about their own house.

The prime minister said that housing finance in India was 10 percent, in Malaysia 30 percent, whereas, in Western countries it was over 80 percent; however, in Pakistan there was only 0.2 percent housing finance in 2018.

Govt incentivising construction industry for low-income segment: PM

Now after the approval of the foreclosure law, banks had started lending, the prime minister added.

The premier said the government had decided to provide five percent interest subsidy in the first five years for the construction of low-income houses, whereas, the poor were being subsidised at two percent service charges for five marla houses.

He said that on 10 marla houses loan was being provided to the low-income group at seven percent interest rate for which the government had earmarked Rs35 billion in subsidy.

The prime minister said that for the first 0.1 million houses, a subsidy of Rs0.3 million had been allocated to lessen their instalments cost.

In addition, he said the incentives had been provided to the construction industry to reduce their cost and provided exemption in 90 percent taxes to the construction industry, and started one-window operation as well for them.

The prime minister said that total 4,400 houses units for low-income group were being constructed in Farash Town on 670 kanals.

He said that ground-breaking ceremony of the project was done in April 2021; of the total 4,400, 2,000 apartments would be for low-income people registered in Naya Pakistan Housing, while 400 apartments would be given to slum dwellers. 2,000 apartments would be given to middle class people, he added.

The prime minister said as the structure was prepared now, the construction of low-income houses would accelerate.

Copyright Business Recorder, 2021