ISLAMABAD: Vowing to encourage vertical expansion of cities, Prime Minister Imran Khan on Monday announced that “sky is the limit” for future high-rise buildings in the federal capital and the two provinces where his party rules.

However, about the Naya Pakistan Housing Programme, Mr Khan said that non-disposal of a case related to foreclosure laws pending in the Lahore High Court was a major hurdle in building five million low-cost housing units.

The prime minister expressed these views while addressing the launching ceremony of State Bank of Pakistan’s finance policy for low-cost housing.

Mr Khan said: “Except the areas which are close to the airports, developers are permitted to take their buildings as much high as they can.” He said he wanted to make Islamabad a “model city” and there would be no bar on height of buildings except for those close to airports or in flight restriction zone.

Interestingly, a few days ago the prime minister had disagreed with the Civil Aviation Authority (CAA) that construction of highrise buildings should not be allowed near airports. He reportedly said there was no such restriction in developed countries, as skyscrapers could be seen in the vicinity of airports in the United Arab Emirates (UAE), the United Kingdom (UK) and the United States (US).

Low-cost housing project facing hurdles, says prime minister

However, at the launch of SBP’s finance policy on housing, Mr Khan said: “Except for areas with aviation restrictions, citizens [builders and developers] will be allowed to build high-rises in commercial areas of Islamabad to whatever height they prefer.”

“The government will not let cities to expand horizontally. Cities will go upwards. Expansion of cities is endangering green areas and risks national food security and environment,” he reasoned.

In order to protect green areas, the prime minister said the government took the decision to encourage building of cities vertically. In this regard, he said there would be no restriction on the height of buildings in Islamabad, Punjab and Khyber Pakhtunkhwa.

Since coming to power, the Pakistan Tehreek-i-Insaf has been trying to lift the lowest segment of society by providing them basic facilities, including that of housing, the PM said, adding that everyone wanted to have their own home. He appreciated the SBP for giving incentives to commercial banks to lend money to citizens for low-cost housing in the country, particularly in the erstwhile Federally Administered Tribal Areas (Fata).

Special package in the policy meant for tribal areas would be crucial, as people in the war-torn areas were looking for funds to rebuild their houses and infrastructure, he added.

PM Khan also lauded the SBP for not ignoring the transgender community and widows while framing the policy for house financing. He said: “The inclusion of the transgender community and widows in the policy is quite positive.”

Five million housing units

Mr Khan said the government had an ambitious plan to build five million low-cost housing units in five years. But this would not be possible, he said, adding that a case regarding foreclosure laws was pending in the LHC. He expressed the hope that the court would decide the matter early.

Foreclosure law provides the means for a mortgage lender to take possession and sell a home when the borrower has defaulted on the loan. ... If the proceeds are not enough to pay off the loan, the borrower may be held personally liable for the difference, in addition to being forced out of the house.

Also praising the SBP policy for provision of credit to small farmers and small and medium enterprises (SMEs), Mr Khan said they were the backbone of the economy and they must be provided soft loans.

Vowing to bring about a ‘change’ in the country, the prime minister said the government’s flagship affordable housing programme would run the wheel of the economy as it would not only help 40 allied industries but also generate employment. “We have planned to provide 10 million jobs to youth and I believe that the housing programme will provide half a million jobs during the first year,” he added.

Commercialisation of urban slums

He said the government also planned to regularise Kutchi Abadis by replacing them with flats. “Unfortunately, no one had ever thought about those living in slum areas without basic facilities. But we are inviting developers to use their [slum area] land for commercial purposes and build apartments on them for the dwellers,” he said.

Finance Minister Asad Umar told the gathering that planning for low-cost housing schemes in 12 cities of Punjab had already been finalised, while for three other cities it would be done soon.

Published in Dawn, March 12th, 2019