PRIME Minister Imran Khan on Friday announced a subsidy of Rs30 billion for the Naya Pakistan Housing Project (NPHP), urging the construction industry and investors to “take advantage of the opportunity”, as the government tries to mitigate the economic impact of the coronavirus outbreak. “This means a subsidy of Rs0.3 million will be given on the first 100,000 houses constructed,” he said, while addressing the nation after chairing a meeting of the National Coordination Committee on Housing, Construction and Development in Islamabad.
This is, indeed, a step towards provision of affordable housing to the people under Prime Minister’s Naya Pakistan Housing Project. Borrowing for housing units under the scheme has also been made easier as banks have been directed to allocate five per cent of their portfolios for the purpose while interest rate for five marla house would be five per cent and seven per cent for ten marlas which means significant relief. However, the real issue is actual progress of the project on ground which is not so far encouraging and the relevant authorities need to be made accountable on this account. It may also be pointed out that instead of subsidy exclusively for Naya Pakistan Housing scheme, steps should be taken to bring down the cost of construction. The Prime Minister is talking about a relief of three hundred thousand rupees due to subsidy but cost of an ordinary house has gone up more than three hundred thousand rupees on account of recent hike in prices of POL products after which rates of sand, gravel, blocks and bricks have been raised. Similarly, prices of iron bars and cement are also on the higher side and steps need to be taken to bring them down to an affordable level.
Subsidy for Naya Pakistan Housing Project
