ISLAMABAD, Aug 26: A US-based firm will invest $10 billion in Prime Minister’s Housing Programme, a mega project to construct one million residential units annually in the country.

The Ministry of Housing and Works and the International Oil Company of USA here on Tuesday signed a memorandum of understanding (MoU) in this regard.

Secretary Housing Sami ul Haq Khilji and Country President of IOC Fazal-e-Rahim signed the MoU. The ceremony was also attended by Minister for Housing and Works Rehmatullah Kakar, Managing Director Pakistan Housing Authority Raja Mohammad Abbas, Joint Secretary Ali Abid, chief engineering adviser and senior officials of the ministry.

“The US firm will provide financial assistance to the government on turnkey basis and after construction, a specific quantity of housing units would be given to the US firm and it will sell them on its own terms and conditions,” secretary housing told Dawn.

He said final agreement between the two sides would be signed after the release of half of the promised amount ($5 billion) by the US firm.

The housing minister had told National Assembly recently that the government was in the process of making deals with the firms from Malaysia, Spain, United States and a local company.

Regarding the prime minister’s plan to build one million housing units, the minister informed the House that survey in this regard had been completed and evaluation was in progress, adding that the House would be informed about the progress shortly.

Under the MoU, the US company had agreed to invest $5 billion initially and later on the remaining $5 billion would be released for the PM’s programme.

Speaking on the occasion, the housing minister said that the government would encourage and facilitate the foreign investors in the upcoming mega housing projects.

The government, he said, had chalked out an ambitious plan to construct one million houses annually for the poor, needy and shelterless and government servants under the PM’s programme being implemented all over the country.

“Participation of foreign companies in Pakistan’s housing projects would not only benefit the respective countries to share their experiences in the construction sector but also generate employment opportunities to a great extent,” the minister said.