Karachi: Naya Pakistan Housing and Development Authority (NAPHDA) Chairman Lt Gen (retd) Anwar Ali Hyder on Friday said that banks will start offering loans for the scheme from next week.

He said banks had been facing problems with providing house financing on low interest rates but the government took steps to provide house loans on 5-7 per cent interest rates for which banks would get a number of incentives.

Addressing a seminar on “Opportunities in Naya Pakistan Housing Scheme” organised by the Association of Builders and Developers (Abad) on Friday, NAPHDA chairman hoped that banks would start introducing their products by next week.

‘Banks given incentives to offer Naya Pakistan Housing financing’

He said the federal government has taken major steps for Naya Pakistan housing scheme, including Fixed Tax Regime for builders and developers, 90pc tax relief and incentives to private banks for financing the housing project. These would boost the construction industry for providing low-cost houses and open new employment opportunities.

Naya Pakistan Housing Task Force Chairman Zaigham Rizvi said banks have provided only Rs106 billion worth of housing loans during the last seventy years which is 0.23 per cent of the GDP.

Federal Board of Revenue (FBR) former chairman Shabbar Zaidi said construction of low-cost houses is possible with financing on very low interest rates. The government will have to provide free land and financing for the success of Naya Pakistan Housing schemes.

Karachi Development Authority (KDA) Director General Asif Ikram said that KDA is ready for joint venture with builders and developers for low-cost housing schemes, adding that it is trying to provide free land for the Naya Pakistan Housing scheme in Sindh.

Meanwhile, HBL Head of Islamic Finance Salimullah Shaikh and Meezan Bank General Manager Syed Tanvir Hussain said banks are ready to provide 80pc financing for low-cost housing schemes on cheap interest rates.

Sindh Building Control Authority (SBCA) Director General Ashkar Dawar said he would provide approvals of building plans within 10 days besides ensuring that all relevant departments would cooperate.

Published in Dawn, September 26th, 2020