ISLAMABAD, Sept 23: The Ministry of Housing and Works on Tuesday signed a memorandum of understanding with two foreign companies to build houses and flats in major cities of the country.

The two foreign companies, German Impro and Canadian Star Development Corporation, would construct 200,000 residential units under the Prime Minister’s Housing Scheme.

Under the agreement, both the companies would invest $500 million in the first phase and intend to invest two billion euros.

The Pakistan Housing Authority (PHA) Managing Director, Raja Mohammad Abbas and chief executives of the German and Canadian companies signed the MoU.

“There are a lot of opportunities for the local and foreign investors in the upcoming mega housing projects. The government will encourage and facilitate them to the maximum,” said Minister for Housing and Works, Rahmatullah Kakar who witnessed the ceremony.

Construction of a million houses annually under the housing programme should provide the shelter to the government servants and public, the minister said. Mr Kakar said the signing of MoUs with the German and Canadian firms would benefit the country to learn from their experiences in the vital sector of economy.

Balloting for G-14 plots: Meanwhile, in a separate ceremony the housing minister held balloting of 997 plots of different categories in G-14 Sector at the Federal Government Employees Housing Foundation.

Under the balloting, 125 plots were allotted of category-I for grade 20-22 officials, 153 plots of category-II for grade 18-19 officials, 215 plots of category-III for grade 16-17 employees, 185 plots of category-IV for grade 11-15 employees and 319 plots of category-V for grade 1-10 government servants.

Speaking on the occasion, Mr Kakar said that the government would activate the Federal Government Employees Housing Foundation (FGEHF) to launch more schemes for the federal government employees and announced increase in journalist quota from three to 5 per cent, which would include the technical employees of the newspapers.

Regarding the issue of G-6 sector, the minister said the government would provide them accommodation at various places to mitigate the shelter problem of retiring employees.

Earlier, FGEHF Director General Shahid Hameed briefed the minister about the performance of the foundation established in 1989. He informed the minister that the main objective of the foundation was to provide shelter to serving and retired employees, their dependents and other specified groups.

Mr Hameed said that FGEHF had so far launched 11 housing schemes in Islamabad, Karachi and Peshawar besides construction of 480 apartments in Karachi.