ISLAMABAD, Feb 18: About 270,000 housing units are required every year to fulfil the needs of the country's growing population, Minister for Housing and Works Syed Safwanullah said.

According to an official announcement, the minister said in order to resolve this issue the government was actively implementing the National Housing Policy announced in 2001 which contained long and short-term policy measures.

Mr Safwanullah was talking to a delegation of International Housing Finance on Wednesday. Secretary Ministry of Housing and Works Jaleel Abbas was also present on the occasion.

The minister said in this policy, major emphasis had been given on resource mobilization, land availability, incentives to developers and construction industry.

Land acquisition laws are being suitably amended to enable a unified, transparent and market value-oriented system and to minimize litigation. Duties and taxes on major materials of construction are being rationalized.

Newly-built houses on plots measuring 150sq yards, flats/apartments having an area of 1,000sq ft have been exempted from all types of taxes. State Bank of Pakistan has also increased the capital for House Building Finance Corporation and related financial institutions from Rs100 million to Rs300 million.

HBFC and other financial institutions have been asked to formulate a package for preferential/concessional mark up rates with an affordable system of instalments to provide affordable credit to low and middle income masses especially government servants.

Laws have also been amended to ensure effective recoveries of loans and advances from defaulters. To this effect the participation of private entrepreneur will be most beneficial to make this scheme of housing successful, the minister said.