The Association of Builders and Developers of Pakistan (ABAD) urges the government to introduce a revival package for the construction sector. This package would facilitate large housing projects and promote the cement, steel and allied industries. SM Nabeel, chairman of ABAD North, has expressed optimism that the federal government will soon unveil a revival package to address the industry’s challenges and stimulate sustainable development.
In recent media statements, Mr Nabeel praised establishing a dedicated task force and highlighted ABAD’s proposals, which include reducing withholding tax, eliminating the federal excise duty (FED), and introducing fixed-rate mortgages to attract investment and boost economic activity.
Mr Nabeel also believes that the real estate sector has the potential to attract US$100bn in foreign direct investment, which could greatly enhance economic growth. The construction and housing industry is Pakistan’s second-largest employer and is vital in maintaining financial stability. With 72 allied industries, including cement, steel, bricks, paint, glass and electrical equipment directly linked to construction, a thriving sector can create millions of jobs and significantly contribute to GDP.
However, construction costs have soared to unprecedented levels in the past three years, making home ownership increasingly difficult for many. Over the last four years, cement prices have jumped from PKR500 (US$1.79) to PKR1350 (US$4.82) per bag, placing home construction beyond the reach of numerous individuals. Tackling these rising costs is essential for ensuring affordable housing.
Pakistan urgently needs to address its housing shortage of 12m homes. ABAD has proposed low-cost housing initiatives to the Prime Minister and fixed-term mortgage loans featuring stable interest rates for 15-20 years. These measures could make home ownership more attainable and drive long-term economic growth.
by Abdul Rab Saddiqi, Pakistan
