Extension to fixed tax regime for construction sector by one year announced

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ISLAMABAD (News Desk) – Prime Minister Imran Khan has said that banks will extend all possible cooperation for the construction of low cost houses and loans will be provided for low cost houses at the rate of 5 percent to 7 percent.

In his address to the nation on Thursday, the prime minister while informing the people about the important decisions for the construction sector said that the government has extended the fixed tax regime for the construction sector by one year.

He said that master plans were being prepared for bigger cities to prevent unplanned spread of urbanization and to protect agri land and in the first phase, Rs 300,000 will be provided at the beginning of construction of 100,000 houses. He said unplanned spread of cities can create food security problems for Pakistan in future if this practice is continued unabated.

The prime minister said that all the banks have agreed to provide loans till December 2021 for construction sector in Pakistan, adding that Rs 378 billion have been kept for affordable housing in Pakistan.

Imran Khan went on to say that economic activities of around Rs 1,500 billion will be started in Punjab only and will generate around 250,000 jobs as a result of massive package announced by the government for the construction sector. “So far 186 construction projects have been registered on the FBR portal, while work on projects worth Rs 163 billion has already begun,” he said.

He said that records of government lands in Karachi, Lahore and Islamabad would be compiled and the digitization of the three cities will be completed by August next year. The master plan will remove barriers to sewerage and water supply.

Imran Khan said a subsidy of Rs 30 billion will be provided to low income people enabling them to get their own house under affordable housing scheme, adding that loan subsidy at the interest rate of five and seven percent respectively will be available on houses of five Marla and above.

The premier further said the government will fully back the construction sector and encourage wealth creation so that we can generate jobs for our youth and payback our debt. He said it is a good sign that record sale of cement and steel has been witnessed, which shows boom in the construction sector.

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