ISLAMABAD, Dec 21: The housing ministry will exempt all new construction of houses on plots measuring upto 150 sq yards and flats/apartments measuring 1,000 sq feet from all types of taxes for a period of five years, a ministry source said.

The decision was taken by the government to provide incentives to people of the low income group.

Under the housing ministry policy, provincial governments will provide land to development agencies and private sector builders on reduced rates subject to the condition that proportionate subsidy is provided to the ‘target group’, i.e the low income group, poor, needy and the rural population.

The provincial departments will identify state land (Shammaliat Deh) for rural housing in and around the existing villages, settlements and towns, the policy said.

The source said part of the sale proceeds of valuable public land would be set aside to provide plots for low income housing at concessionary rates.

He said the loaning agencies, companies and developers would provide standard and cost effective designs and plans to prospective home builders.

The source said for the promotion of rural housing, the provincial governments would examine the possibility of granting proprietary rights to individuals and families residing in houses constructed on Shammaliat Deh and state land.

He said subsidized micro-loaning facilities would be extended for rural housing construction and improvements through micro-financing system and institutions like Khushhali Bank, Zakat funds, etc.

The role of local bodies in planning, determining needs and preparing action plans to mitigate housing shortages will be defined including resource mobilization at the local level, he added.

The source said ‘construction clinics’ would also be established in rural areas to provide guidance and advice for cost-effective, durable and environment-friendly construction.

According to a study of the housing ministry, of the total housing stock in Pakistan, 67.7 per cent is in the rural areas and 32.3 per cent in the urban areas.

The living condition is reflected from the fact that out of the 13.451 million rural households in Pakistan, 41.5 per cent live in one room units, in which the predominant roofing material is mud, wood, bamboo and straw, the report said.

It said the inadequate quality of housing for the low-income groups was clearly reflective in the Kutcha Abadis, squatter settlements, shanti towns and slums in the urban areas.

The report said the state of rural housing was unsatisfactory.