Rs0.3 mln subsidy on each house under Naya Pakistan Housing Program: PM

ISLAMABAD: Prime Minister Imran Khan has announced that the federal government will provide around 0.3 million subsidy on each house to be constructed under the Naya Pakistan Housing Program, ARY News reported on Friday.

The premier made the announcement for allocating Rs30 billion funds for providing subsidy on the construction of each house under Naya Pakistan Housing Program (NPHP).

After chairing a high-level meeting of National Coordination Committee (NCC) on Housing and Development today, PM Imran Khan said NPHP was initiated by the present government to provide an opportunity to the poor people to build their own houses.

He said that mostly countries around the world would make special allocations for housing and the banks were providing home financing facilities to the locals.

Read: Those willing to invest in ‘Naya Pakistan Housing Scheme’ now only have to pay 10% tax

Imran Khan said that the government faced many difficulties to make progress in the project as banks would only provide house financing facility after getting satisfied for the payments of the instalments. The committee constituted by the federal government will remove all barricades in the housing project.

The coronavirus pandemic has created severe economic crisis around the world, however, the federal government provided a subsidy of Rs30 billion for NPHP.

“In its first phase, 100,000 houses will be constructed under NPHP and around Rs0.3 million subsidy will be given on each house. Five per cent interest would be charged on loans acquired from banks for the construction of the five-marla house and seven per cent interest for 10-marla house. The government has asked the banks to set up five per cent portfolio only for construction. The overall amount would be Rs330 billion. The coordination committee will remove all barricades for the progress of NPHP related to the banks.”

“It is decided to reduce NOC rates to its lowest after holding consultation with the provinces. Each province will work for the housing project through one-window operation, whereas, the authorities will establish a web portal which will end need to approach different departments. We have also reduced the taxes in order to cut construction cost.”

Read: MoU signed for interest-free loans under Naya Pakistan Housing project

The premier said that the investment made in the construction sector will not be questioned. The federal government has talked with the international community about the undocumented economy.

“We have been given time for the project until December 31 this year. I am asking our people again to take advantage of the opportunity by making as much investment in the construction sector as possible.”

Imran Khan said that not a single government had facilitated the common man of the country to build his own house. He expressed hopes that the construction sector will also provide employment to the nationals in the coming days.

“In the United States (US), a financial package worth $3,000 billion was given to run the economy. Our government is also willing to generate employment for the nationals through housing and construction sectors.”

Read: Construction of units under PM’s low-cost housing scheme begins

Earlier, Prime Imran Khan chaired a meeting of the National Coordination Committee on Housing Construction and Development today.

The premier had constituted a 13-member National Coordination Committee (NCC) to act as a facilitator of the federal government to construct low-cost houses.

The meeting is being attended by the officials of the ministries of housing, planning, finance, energy, petroleum and law and justice.

The participants of the meeting will review the progress of ongoing housing projects besides apprising the premier for the issues to the construction sector and tabling the recommendations to the federal authorities.