Federal Government Announces Construction Package to Provide Affordable Housing Amid Rising Inflation

Islamabad:In response to the growing demand for affordable housing amidst inflation, the federal government has launched a construction package aimed at providing low-cost homes to the public.*

In an exclusive conversation with *Samaa*, Hafiz Nauman, a member of the Housing Task Force Committee and Chairperson of the Sub-Committee for Urban Development, shared details of the Prime Minister’s Construction Package. He stated that the initiative is designed to boost the housing industry and help citizens acquire affordable homes.

The package includes relief in taxes for the construction industry, including exemptions on property transaction taxes. Additionally, the federal government has directed the provinces to comply with the measures, and discussions with the Federal Board of Revenue (FBR) are ongoing. To further strengthen the housing and construction sectors, banks will provide consumer financing.

Hafiz Nauman also emphasized that both the State Bank and other financial institutions are aligned with the plan, ensuring smaller installment options for ordinary citizens to maintain a balance between income and expenditure. He also highlighted the growing threat to the nation’s green zones and the agricultural sector, advocating for the construction of high-rise buildings as a solution to save the green zones.

As part of the package, the government has decided to establish the Apex Housing Finance Institution and provide 14 key services for housing projects. In the meeting, discussions are also ongoing about the introduction of a single-digit policy and other proposals to promote the housing and construction industries.

Under the package, banks will allocate 10% of their private sector loans to the housing and construction sector, with a focus on collaboration between banks and other financial institutions. A reduction in the policy rate and the introduction of fixed-term loans ranging from 10 to 20 years are expected to stimulate mortgage financing for low-cost housing projects.