PM Imran announces Naya Pakistan Housing Authority

[El Sidd]

yet ppl downloaded 60,000 form in just 1 hour making nadra website crash.

yeah yellow cabs sold more too.

These supposed low cost homes costing between 75k dollars to 125k dollars are planned poorly and do not provide incentive for fruitful internal migration which may encourage agricultural basis of the economy because people are selling cultivable land and making huge apartments

 

[Baghial]

ISLAMABAD:

Prime Minister Imran Khan on Wednesday unveiled his government’s “flagship” project – Naya Pakistan Housing Programme – aimed at constructing five million houses for the low income segments of society during the next five years.

The prime minister hoped that the successful implementation of the programme would not only boost the country’s economy but also create immense job opportunities.

The government would provide the required land for the project and play the role of a regulator and facilitator to address bottlenecks to provide an enabling environment through the one-window facilitation centre for public and private sectors and non-profit organisations who would execute the project.

The prime minister said soon after the government announced the five million housing project, foreign construction companies started approaching the relevant authorities in the country to become part of the project.

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“Even one country expressed its intention to invest up to $20 billion in this project,” the prime minister revealed.

He said the government would target ordinary Pakistanis who never even imagined in the past to have a house of their own and they will directly benefit from this programme.

The prime minister announced that a pilot project would be commenced on Thursday (today) with the initiation of the registration process for low-cost houses of the federal government employees of BS-1 to BS-16 in the federal capital. The pilot project would be executed by the private sector under a joint venture with the federal housing foundation.

Naya Pakistan Housing Authority

The prime minister announced setting up of an apex body named the Naya Pakistan Housing Authority to create one-window facility to facilitate and regulate the private sector.

Imran said he would himself oversee the operations of the proposed authority that will be set up in the next 90 days.

However, till the proposed authority starts formal work, a 17-member taskforce with the private sector in the lead role will look after the project’s affairs.

The prime minister also announced setting up of land bank within the next two months, saying suitable land sites were available with the federal and provincial governments, local bodies and private sectors and in areas occupied by slums.

He said the government would facilitate the project with regard to the provision of land. He said on existing slums, vertical buildings will be constructed and residents of slums would be given ownership rights there.

The prime minister said it was a demand-driven initiate and; therefore, with the help of the country’s database authority the data bank of potential beneficiaries of the project will be developed.

He said the registration process will be started initially in seven districts. People will be asked to submit forms at designated sites of Nadra from October 22.

He said the exercise would be aimed to get exact knowledge of demand in different areas across the country.

The prime minister said applicants would be asked basic information like where they want to live and how much money they can pay per month in return for obtainging the house loan.

Financial model

The prime minister lamented that only rich can afford to purchase or construct houses in the country and “due to impediments in our legal structure, obtaining loans to construct houses by lower income groups is very difficult”.

He said only 0.25% Pakistanis obtain loans to construct or purchase houses while it was up to 80% in the US, 30% in Malaysia, 9-11% in India and 3% in Bangladesh.

“The government housing policy will remove all the impediments that hinder Pakistanis to avail loan facility to construct or purchase houses,” Imran announced.

The financial model of the project, which is yet to be fianlised, provides for the provision of mortgage facility to buyers with a repayment plan of up to 20 years.

Moreover, the government plans to raise funds through the issuance of sub-sovereign bonds, municipality housing or Sukuk bonds.

The finance ministry has been asked to finalise a complete financial model of the project in the next two months.

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He said the government housing projects fail in Pakistan due to the absence of a proper mortgage finance model in the country.

The prime minister said with the help of the State Bank of Pakistan, a National Financial Regulatory Body would be established in two months to regulate and facilitate the financial loans.

Talking about the necessary legal framework for the project, the prime minister said the law ministry would do the necessary work to determine the legal status of available land and necessary foreclosure and eviction laws in the next two months.

Economic boost

The prime minister said the construction industry would create jobs for unemployed youth of the country, while it would directly benefit some 40 industries.

“I want the younger generation to start their own construction firms and companies. The government will also initiate skill development programmes related to the construction industry for the youth,” he said.

He said investment in the construction industry was considered the safest across the world and it will help boost GDP growth.

He said there is a shortfall of 10 million houses in the country while annual housing demand is around 0.7 million units.

He said the houses would not only be constructed in major cities but also in villages.

He comes another scam...
A new malik riaz ...mr musrat from manchester uk..
Similar shitholes were constructed in 80..in islamabad..
Karachi company...
Pakistan is a real state...
A lot of blaxk money is invested in real state.....
While 50%pakistanis sleep with empty stomache......
Justice is randi in heera mandi..
Who ever got dollars...this randi will give a splendid service and tamasha..

 

[maithil]

Peopey have been coming out in suppyof such initiatives from IK..

just look this video in support of Washrooms IK is talking about...

https://twitter.com/x/status/1050574015700631552

https://twitter.com/x/status/1050718753992966145

 

[ejaz007]

Naya Pakistan Housing: The lies we tell
By BR Research on May 21, 2020

There are lies we tell others, and then there are those lies that we tell ourselves hoping if we bury our heads in the sand long enough, they will become irrelevant. That the Naya Pakistan Housing Program (NPHP) will provide housing to poor and low income households may be one of the most blatant lie this government might be telling itself. At best, it is a housing scheme that will boost supply which could spur demand in the long term. At worst, it is a housing scheme that will boost supply with no demand in sight.

But to properly evaluate NPHP, readers must walk back to the time when Imran Khan first announced this ambitious plan to construct 5 million houses across a five year period. Where did this 5 million number come from? In fact, let's walk back a little further in time. Over the past several years, every time the housing shortage is mentioned in Pakistan, the estimate number quoted is 10 million. The State Bank of Pakistan (SBP) associates this number to the World Bank whereas the World Bank credits this number to the SBP, coming back full circle—the rest of the myriad of stakeholders who mention this number being none the wiser. So a mammoth 10 million housing shortage, source unknown.

In essence, when PM Imran Khan arbitrarily picked the 5-million target for the supply of housing under the NPHP plan, there seems to be no background research backing this agenda. That is not new—political party agendas are seldom backed by sound research but when such an agenda becomes a policy, surely that's when it must.

To introduce any housing plan, the most basic question that must be asked is: what is the demand and where (in terms of geographic and socioeconomic standing) is the demand. Had that research been done, the policy would have been designed accordingly whereas right now, the target supply seems arbitrary. Piecemeal district level research in Lahore (authored by Tasneem Siddiqui) for example suggests that—based on a 2012 survey, 68 percent of the population (earning less than 30,000) from the bottom had access to 1 percent of the supply whereas 12 percent of high income (earning Rs250,000 and above) households had 56 percent of the supply. This means that supply is concentrated in the top.

This research needed to be done on a much larger scale to ascertain the demand-supply dynamics across urban and rural Pakistan. Without knowing these fundamentals, how can the government provide a target number of housing that need to be built?

More importantly, it leads to more pressing questions: how will the government define affordability in order to target it via subsidies and other measures? In fact, who will utilize the announced of Rs30 billion subsidy? How much of the subsidy will be allocated for whom or which income groups? Though the official plan has provided the target price range (or rather upper limits) across rural, semi-urban and urban locations, there is no income criteria to be eligible for NPHP. Or if it is, that is unknown.

On the official forms, there are three installment plans under the program. Applicants can pay a monthly Rs5,000 to Rs10,000 in the lowest category; Rs10,001 to Rs15,000 in the middle category and between Rs15,001 to Rs20,000 in the highest category. Let's do some quick calculations. If a house costs Rs3 million and monthly installment the consumer will pay is Rs20,000 (and also suppose this household was able to borrow from the House Building Finance Corporation (HBFC) under its “Ghar Pakistan" scheme that provides mortgages at 12 percent fixed rate for a tenor of 20 year), the subsidy the government will have to provide this house every month is about Rs10,000.

Now the government wants to build 400,000 houses in urban Pakistan in one year. The total annual subsidy for the above example comes to a whopping Rs47 billion! Does the government have this kind of fiscal space?

On the other hand, if one were to insist that this fiscal space could be created, can low income households afford even this? Using the global affordability metric, a household can afford the rent or mortgage payment of a house that is no more than 30 percent of their income. By that measure—though this is not contextualized to Pakistan's case which makes it unreliable in itself—a household will need to be earning Rs60,000 per month to afford a Rs3 million house under the NPHP given that the government provides this household the aforementioned subsidy.

It has been clear all along that the NPHP is not housing for poor. It seems that the government thought it best to offer supply side incentives to builders (read more: “Construction amnesty: Caution is advised", April 6, 2020) so they can bring projects and spur construction. Demand will follow suit.

But assuming the affordability issue is put aside momentarily, there are still many more questions that remain which questions the potential success of this project. More on that later.

https://www.brecorder.com/2020/05/21/599104/naya-pakistan-housing-the-lies-we-tell/