Business | Investment
Pakistan seeks big housing investment
Pakistan is luring investment from the UAE and other countries for its gigantic project to build one million low-cost houses every year.
- By Ashfaq AhmedChief Reporter
- Published: 23:52 May 11, 2008
Dubai: Pakistan is luring investment from the UAE and other countries for its gigantic project to build one million low-cost houses every year.
"So far about six countries have shown interest in building the houses under a new project 'A house for every Pakistani family' launched by Prime Minister Yousaf Raza Gillani," said Haji Ramatullah Kakar, Pakistan's federal minister for housing and works. There is a shortage of 7.9 million houses in Pakistan.
Addressing the Pakistan Business Council in Dubai on Saturday, Kakar said the project is open to all and people from around the world can invest and develop the project.
"The government will provide land and also give tax exemptions in addition to facilitating the investors, contractors and developers to build houses through a one window operation at the ministry," he said.
A large number of leading Pakistan businessmen who attended the function showed interest in the project, but the minister could not divulge details and failed to satisfy potential investors about the procedures for investment and incentives for foreign investors.
"Why is he here to meet us if he does not know the full details about the project?" asked a leading businessman whose questions went unanswered. Tahir Hussain, from a leading property developer in Dubai, wanted to know about investment incentives and profit sharing but could not get a reply.
Mohammad Ali, another leading property developer in Dubai, questioned the continuity of the project in case of a change of government. The minister said that investors would be given bank guarantees for their investments with interest to ensure protection of their investments. According to an official estimate, an investment of a huge $8 billion (Dh29.36 billion) would be required to build one million houses.
Kakar said that there would be immediate and long-term benefits for the developers, contractors and investors in this first public-private sector project launched by the new government.
He said the prices of the houses will vary from Rs1.6 million (about Dh100,000) to Rs6 million Dh350,000 depending on the size of the houses.
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