Incentives for construction sector to boost economy

[Lahore_Real_Estate]

Saturday, January 09, 2010
By News Desk
RAWALPINDI: The construction industry deserves special incentives to overcome unemployment and promote the national economy. In this connection, the decision taken by the previous government to grant it the status of industry has to be implemented immediately and special concessions should be given in the interest rates, as was the practice in the developed countries. The overall negative growth in the country had also affected the construction industry, which has shown no growth in the last two years.

Taking part in the ‘Jang Economic Session’ on “The role of construction industry in the national development”, the participants pointed out that half of the $7 billion remittances from the overseas Pakistanis were meant for the property sector. They warned the investors against any crisis, like the one that happened in Dubai, and stressed to strictly abide by all by-laws and regulations before launching new housing societies.

The session, which was hosted by Sikandar Hamid Lodhi and Intekhab Tariq and attended by former chief economist Planning Commission of Pakistan Dr Pervez Tahir, Engineer Pervez Mukhtar, Managing Director Habib Rafiq Construction Group Habib Ahmad, former chairman Institute of Architects Pakistan Lahore Chapter Pervez Iqbal and the State Adviser Chaudhry Abbas called for binding the housing societies to acquire insurance cover.

Dr Pervez Tahir was of the view that we are ignorant of the priorities with regard to the economic development. At times, emphasis is laid on agriculture or on the manufacturing or housing sectors.

He said the construction sector is linked to economic development, which had been showing a negative trend for the last two years. The construction industry and inflation go together, he said and added that investments in the real estate rise with the rise of inflation.

Pervez Mukhtar asked the government to offer the basic facilities to the construction industry. He pointed out that the construction sector in the country may be revived by launching projects like new dams and powerhouses and improving the infrastructure.

Habib Ahmad said over 50 industries were linked to the construction sector. Its development is the source of revenue for the government and also offers employment opportunities in the country.

He warned against the land mafia in the country and said the government should get implemented laws to curb them (land mafia).Pervez Iqbal pointed out towards the growing trend of unorganised constructions. He said instead of machinery, manpower has to be used in the construction projects to overcome unemployment.

Chaudhry Abbas said development was linked to giving the status of industry to the construction sector. But to develop the real estate, protection has to be ensured to investors. He also stressed to set up the real estate regulatory authority to offer protection to investors.