By Abdul Qadir Qureshi
(Pakistan News & Features Services)
(Pakistan News & Features Services)
The Association of Builders and Developers (ABAD) has welcomed the
recognition of the construction industry at the national level as their
proposal was incorporated in the federal budget for the fiscal year
20015-16.
Addressing a press conference Junaid Ashraf Taloo, Chairman, Mohammad
Hanif Memon, Vice Chairman, and Mohammad Hassan Bakhshi, Chairman,
Southern Region, observed that for the first time the construction
industry was given its due importance with the acceptance of the ABAD
proposal in the federal budget. Zaigham Mahmood Rizvi, housing expert,
and Saleem Kassim Patel, Convenor Budget Committee, were also present on
the occasion.
“If our proposals would have been accepted in total, it would have
reduced the housing cost by 15% and increased in revenue collection of
government,” they declared.
Junaid Ashraf Taloo appreciated the Federal Finance Minister, Ishaq Dar,
for taking some positive steps for construction industry.
“We would have witnessed phenomenal growth of the construction industry
if all our proposals were accepted. Further it would have provided
greater relief to common man regarding low cost houses,” the ABAD
Chairman stated.
“A few automatic re-rolling mills hold monopoly and they are selling the
steel bars at a much higher rate. In the local market steel bars are
being sold through cartellization at the rate of Rs.85,000 per ton,” he
pointed out.
He appealed to the government to allow import of steel bars to the ABAD
members directly whose benefit will be passed on to common man. He asked
the government to abolish Federal Excise Duty on sale of cement may be
abolished. The ABAD had proposed that sales tax on cement be charged at
ex-factory rate instead of the market rate.
He urged the government to establish Mortgage Finance Board to boost the
housing sector so that the shortage of 80 lacs houses was minimized,
besides asking the authorities to abolish Provincial Services Sales Tax
on builders since they were not classified as service providers.
“The government has to provide discount in Mortgage Financing and the
Markup should be decrease to 4% or 5%, it will improve the purchasing
power of common man. The ban on gas connection should be lifted,” the
ABAD Chairman appealed.
The ABAD proposals also included the start of first phase of Motorway
M-9 from Karachi instead of Hyderabad, allocation of funds for K-IV
water project to solve the water problem of Karachi, and the fixation of
markup on house finance @ 3% only.
