13 February 2004	Friday	21 Zilhaj 1424

KARACHI, Feb 12: Leaders of construction and development industry have threatened to close down their business because of what they allege indifferent attitude of government agencies towards their problems.

Construction was billed as the key industry in the current fiscal year's budget for which the government offered tax concessions to cement, wires and cable industries and as many as 14 financial institutions are offering specialized financial products for housing.

The finance minister Shaukat Aziz in his budget speech in June last year had expressed the view that construction industry would be the driver in economic revival and job generation as many as 40 industries would pick up production.

But a frustrated Chairman of the Association of Builders and Developers (ABAD), Babar Mirza Chughtai has written a detailed letter to top government functionaries, including President General Pervez Musharraf, saying: "We, the people associated with construction and housing industry have no choice but to close down our business and pull out entire investment in this industry."

"Only a handful affluent citizens are taking advantage of these housing finance loans from commercial banks," complains Mr Chughtai in his letter while pointing out that "all the banks have developed a negative list of areas of low income group people who need these loans desperately."

This is oblique reference to the policies of many banks that refuse to offer loans for housing construction in Nazimabad, North Nazimabad, Liaquatabad, Malir and many such areas from where deposits are mobilized in billions. The banks have also put journalists, lawyers and policemen on the negative list.

The ABAD chairman wants a policy decision from the State Bank of Pakistan on lending of housing finance. He alleges that a cartel has been formed to push up cement prices in the market despite a reduction in excise duty proposed in the last budget.

What is frustrating is the role of public sector cement factories that are not passing on excise duty concession to the consumers. The Monopoly Control Authority remains a silent spectator to this sordid game of reaping profits.

Mr Chughtai is angry on the continuing stalemate on the issue of regularization of a very large number of buildings in Karachi and also regularization of plots alleged to have been allotted on political considerations since 1985.

He attributes this stalemate to unending scuttle of power between the provincial and city governments. He has given specific examples where millions were paid for regularization without achieving any result.

Another impediment in growth of the construction industry is negative attitude of the electric supply company and water supply agency in Karachi which charge exorbitant rates and delay inordinately in giving connections.

Then there are many other issues such as directive of the Security Exchange Commission of Pakistan to stop developers from collecting deposits and sharp rise in billet prices which are stunting growth of the construction industry.