The federal government launched the Naya Pakistan Housing Programme (NPHP) for the construction of 5 million housing units to provide affordable houses to the low-income segment of the society. In this endeavour, various low-cost housing projects are being launched and executed as per the Honourable Prime Minister Imran Khan’s vision for the provision of shelter to low-income people in the shortest possible time.
Detail of Schemes
Around 45,000x low-cost housing units are under construction all over the Country including 4x recently inaugurated projects comprising 13,000x housing units at LDA City 3635 (2021) Senate (S) PC-2 By M Azhar Lahore, Jalozai Nowshera, Alipur Farash, Islamabad, WWF, Zone-V, Islamabad and Peshawar.
The private sectors have submitted 180 x proposals to the Naya Pakistan Housing and Development Authority (NAPHDA) for the construction of more than 3 million housing units, out of which 45 x projects comprising 70,000 x housing units have been shortlisted. Works on these projects would start very soon.
A project of approximately 2,300 x houses at government land in Islamabad (Sangjani) is in its evaluation process and will be accomplished soon.
The NAPHDA in consultation with the Punjab government has conducted a survey to identify peri-urban sites for such low-cost housing units (Rs 15 Lac each). In this endeavor, in the 1st phase 41 x sites for construction of 10,239 x low-cost units have been identified. Earth breaking ceremonies have been held at 12 x locations. 17 x more locations will be inaugurated in near future.
The Federal Government Employees Housing Authority (FGEHA) has launched the following projects under the Naya Pakistan Housing Programme:-
(a) Kashmir Avenue, G-13, Islamabad – 1,467
(b) Skyline Apartments, New Airport, Islamabad – 3,945
(c) Chaklala Heights, Chaklala Scheme-III, Rawalpindi – 3,432
(d) Sky Garden Scheme, Bara Kahu, Islamabad – 5,198
(e) Life Style Residency, Bedian Road, Lahore – 1,258
Total Housing Units – 15,300
Progress of the NPHP
11,408 x houses have been financed by Akhuwat Foundation up to May 21, 2021.
The NAPHDA has so far signed the following MoUs with provincial governments/line departments and multiple development authorities:-
(a) MOU with WWF for the provision of cost subsidy to allottees of 1,508 LCUs at Zone-V, Islamabad.
(b) MOU with LDA for construction of 4,000 LCUs, where NAPHDA will provide Cost Subsidy to the eligible allottees.
(c) MOU with PHA–KP for construction of 1,508 x LCUs at Jaluzai Housing Scheme Nowshera-KP, whereby NAPHDA will facilitate NADRA verified/bankable allottees in the provision of cost subsidy.
(d) MOU with CDA, for construction of 4,000 x LCUs.
(e) MOU with M/S Pak China Development Private Limited.
In the current scenario, where construction of low-cost houses on government land is a time-consuming activity, the NAPHDA introduced an innovative model of (Negotiated Procurement on Private Land) for the construction of Low-Cost Units (LCUs), on private land by engaging private developers/builders to construct such houses on their own parcel of lands. The NAPHDA has already obtained approval of the federal government in this regard.
Pursuant to the above-mentioned model, the NAPHDA sought proposals from private builders by publishing an Expression of Interest (EOI).
In response to EOI published in daily newspapers, the NAPHDA received 180 x proposals from private builders which are being evaluated.
In order to boost the housing and construction activity, taxes have been significantly reduced for all types of construction for low-cost housing units. For low-cost housing units, 90% of taxes have been waived off.
The package contained a markup subsidy on bank loans for construction of five (5) and ten (10) marla houses, reduction in tax and duties on sale and purchase from 47% to 2%. The project approval process has also been eased to allow the timely initiation of projects.
Banks have received 19,393 x loan applications worth Rs 60.04 billion up to May 20, 2021. Out of it 6,596 x applications worth Rs 80 billion have been approved.
Note: The above information/data was shared in writing with the Senate on June 3, 2021 by the Minister Incharge of the Cabinet Division.
