Pakistan is projected to see rapid growth in the housing and construction industry as builders and developers are expected to launch around 1,000 new projects worth more than Rs1 trillion over the remaining period of 2020.
Prime Minister Imran Khan unveiled an industry-specific historical relief package cum amnesty scheme -subsidy and tax holidays for investors and consumers. It aims to generate job opportunities for day-to-day wage earners to overcome the current domestic economic condition amid coronavirus.
The former chairman of the Association of Builders and Developers of Pakistan (Abad) Hasan Bakshi told Pak Revenue, “The housing and construction industry would not only attract local investment but also huge foreign investment under the historical package.”
“Delegations comprising of investors and constructors from countries including Singapore, China, and the UK have visited Pakistan before the pandemic outbreak (in China in December 2019),” he added.
As the whole world is fighting with the coronavirus pandemic so, it seems an impossible task to predict the volume of foreign investment at this crucial time. He further said, “The foreign investment will be huge, which in addition to the local investment, is expected to carry potential to get rid of IMF loan programme over the next two years.”
During the first two months of the current fascial year, Pakistan has started to see an economic revival after suffering from three years of economic distress, the worldwide pandemic has delayed the comeback of Pakistan’s economy.
Hasan Bakshi said, “The share of housing and construction industry stands at 2-2.5% in gross domestic product.”
The government would approve a potential project within 45-day. The projects need to acquire NOCs from some 18 departments.
An average project of 100 flats of 2-4 bedrooms each may cost Rs. 1.5-2 billion. The new projects could be categorized into three sizes:
- Low cost (Rs3.3.5 million);
- Medium cost (Rs3.5-5 million);
- High cost (starting from Rs5 million)
The construction activities are expected to start after Eidul Fitr.