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ABAD seeks govt support to revive construction industry - LahoreEstate - 12-16-2009 10:24 AM
Wednesday, December 16, 2009
By Samia Saleem
KARACHI: The Association of Builders and Developers (ABAD) has vowed to evolve a new strategy in a bid to win government’s support for the construction sector and improve check-and-balance mechanism among 700 members of the association.
Two months after new management’s takeover, ABAD targets to gain momentum as the industry buckles under the pressure of law and order situation and lack of government support.
In a meeting with commerce reporters of the print and electronic media, ABAD Chairman Engr Farooq-uz-Zaman spoke about difficulties the builders are facing owing to lack of infrastructure and facilitating environment in the country.
He said besides the huge weight of a backlog of 8.8 million housing units in the country, there were also other projects that have outlived their life and are in desperate need of renovation.
Reiterating his demand for a fixed share in funds lent by banks like that for agriculture, he said if the proposal is implemented by the State Bank, it will prop up the sector as more money will flow in, benefiting the overall economy.
“An industry can only flourish when it is provided an enabling environment,” he said. A lending share of up to 5pc will provide much relief to the cash-strapped sector which simultaneously influences 72 allied industries.
“Only if you build 0.5 million houses, 7.5 million jobs are generated,” added Saleem Kasim Patel, Chairman of ABAD Southern Region. “However, this year government disbursements for housing were hardly Rs500-600 million versus the targeted Rs9 billion,” said he.
Rebuffing claims of fraud by various builders, he said most of the builders are doing transparent work, however certain law and order constraints and other issues do cause problems sometimes.
Commenting on the housing situation, Farooq said: “We have no concept of low-cost housing here. While practically there are no initiatives by the building industry and the government, ideologically too it’s a very vague concept in a society as diverse as in Pakistan.
“If a house worth Rs1 million is low cost for someone, it will be costly for another,” said he. Therefore, the government should provide affordable housing, instead of low cost.
http://www.thenews.com.pk/daily_detail.asp?id=213564