According to the Chairman of Association of Builders and Developers (ABAD), Mohsin Sheikhani, investment in the property sector has been obstructed due to the flawed policies of the government. These policies are preventing investments worth Rs. 200 billion.
ABAD is the national representative organization of builders and developers which aims to unify and streamline the construction in the private sector of Pakistan. More than 800 leading construction companies are part of it.
Sindh High Court has imposed a ban on high-rise buildings which has negatively influenced foreign investments in the country, ABAD Chairman Mohsin Sheikhani said. The ban should be uplifted immediately to avoid the housing backlog. According to him, Karachi is heavily affected by these policies.
Shortage of houses has already traversed which requires billions of dollars in investments.
“The backlog of housing is increasing fast and it will only worsen in coming years,” warned the ABAD Chairman.
Sheikhani also added that this is due to the poor planning of the governments that has resulted in this backlog. This shortage can be overcome if Federal and provincial governments lend a helping hand to the private builders and developers through collaboration and better policies.
Construction Sector Economy
Pakistan Economic Survey 2016-17 reported that the construction sector in the country has seen a growth of 9% during the fiscal year 2016-17, which is 5.6% less than that of the previous year.
The increase of construction activities has also resulted in the increase in demand for products like domestic steel and cements which calls for increase in capacity by the manufacturers.
“The outlook is encouraging on account of firm demand due to flourishing housing schemes and rising development spending along with anticipated CPEC-related projects.”
This latest growth is promising for the country and will create better employment opportunities.