LAHORE, Oct 19: Contractors of the 24 dropped housing schemes initiated under the defunct Mera Ghar project have finally received a third of their dues from the Pakistan Housing Authority on account of work done before the schemes were shelved.

“I’m not sure about the exact amount outstanding on account of work done on the dropped schemes, but my guess is that it must be close to Rs20-30 million. The claims filed by the contractors for (financial) compensation on account of termination of the contracts are in addition to this amount,” Akbar Shaikh, a former chairman of the All Pakistan Contractors Association, told Dawn here on Friday.

The Mera Ghar project was launched by the previous government to provide low-cost housing to the people and 42 contracts were awarded under it before the military took over the government. Work was then suspended on all the schemes. Later, the military regime decided to go ahead with 18 schemes and discarded the remaining 24. When the PHA shelved the projects the contractors were promised that their bills would be cleared in a few weeks. However, added Mr Shaikh, “we have so far received only a third of the amount and there is no indication when the rest would be paid. Nor do we know when our claims for compensation would be decided.”

Mr Shaikh said most contractors were still willing to restart the dropped project “should the government allow them to do so on the developer’s model”. If their request was accepted, he said, it might generate economic activity and rejuvenate the Rs250 billion construction industry. “It would also generate tens of thousands of new jobs and help overcome shortage of housing in the country.”

Construction and related industries employ around 10 per cent of Pakistan’s work force and pay an average of 25 per cent tax.

Mr Shaikh said the country needed roughly 600,000 new units every year in view of its high population growth rate. He said only half the required number was were being built.

“This is adding to the country’s huge housing backlog of about six million units. Out of 300,000 units being constructed a year, 40 per cent are mud houses,” he said.