People can have their own house by paying easy installments: PM 

Islamabad: Prime Minister (PM) Imran Khan said banks have been asked to provide housing loans so that people can have their own house by paying easy installments.

The prime minister said while addressing the inaugural ceremony of PHA Officers Residencia at Kurri Road and PHA Apartments at I-16-3 on Tuesday.

PM Imran Khan said that says 88,000 housing units will be completed this year under Naya Pakistan Housing Scheme. “The government has started mortgage scheme for the salaried class keeping in view shortage of housing facilities in the country,” he added. 

The premier maintained that banks have been asked to provide housing loans so that people can have their own house by paying easy installments. He said housing projects worth 124 billion rupees have been started in last few months, while banks have approved loan worth 40 billion rupees for this purpose.

Imran Khan congratulated the Ministry of Housing for completing housing projects in three years, which had been delayed for 12 years.

The total cost of the project was Rs6.5 billion, consisting of 588 grey structure housing units in the three categories. The project was launched for the federal government employees.

A full-scale physical work initiated on the stalled project in 2018 in the light of prime minister’s vision of providing shelters to the citizens of Pakistan. The project also includes 88 commercial shops, 66 apartments, community center etc, having all the basic amenities.

The prime minister further observed that the construction served as an industry and driving force which could lift the country’s economy.

When the construction industry thrived, about 30 more allied industries also moved on, he said, adding that during the last two years, the construction industry in Pakistan was booming with record cement and steel sales.

The prime minister said that completion of housing projects for the government servants was of significance as they had no capacity to purchase and own their houses.

He also commended the ministry for the completion of stalled projects in the short period of three years.

The prime minister said there was shortage of housing units in Pakistan. The people could own residences if they had cash, otherwise, in the past, there was no option for seeking bank loans for the construction of homes on easy installments due to pending foreclosure law before the courts. Moreover, the banks had no trained people to entertain the loan seekers.

He said the said law had been decided by the courts and now it smoothened the procedure for seeking bank credits.

He said for the first time in country’s history, housing projects worth Rs124 billion through bank loans had been approved and a loan of Rs40 billion had already been released by the banks.

The banking mortgage law would now enable the people to divert the rent of their rented houses to pay easy installments for the construction of their residences, he added.

The prime minister said contrary to mortgage financing in the US and Europe which stood around 80 per cent, in Pakistan, it was less than one per cent to the GDP.

The prime minister referring to the global price hike due to coronavirus pandemic said that the World Bank’s report had confirmed Pakistan growth rate at 5.37 per cent.

He said due to boom in the construction industry, about 40 to 60 per cent increase in the income of labour class was witnessed. An amount of Rs1400 billion was earned by the farmers in the last year due to record five bumper crops.

The World Bank report over the four indicators for the country showed that poverty had been reduced, he opined, adding that during coronavirus pandemic, they had not shut down the construction industry.

Country’s exports had surged whereas record remittances and tax collection was witnessed, he said.

The prime minister said that the future of the country had been set on the right direction as indicated by the Bloomberg, which acknowledged that Pakistan’s economy was put on the high trajectory.