Just as often warned in this space, construction work on all low-cost, public sector housing schemes has had to be stopped because of higher than budgeted cost of inputs, especially cement and steel. That’s got the Public Accounts Committee (PAC) and Public Procurement Regulatory Authority (PPRA) into a bit of a tangle about interpreting existing rules and creating new provisions, but the excuse that international price trends were responsible cannot entirely be accepted in this instance. Prices of all things related to construction and real estate, including those produced locally, shot through the roof mainly because of the prime minister’s second amnesty scheme that attracted black money from all corners of the world and raised demand very sharply in a very short span of time.
Now the campaign promise of affordable housing for low-income families hangs in the air once again. First it took the longest time to take off, then when it finally did, it turned out that the country did not have foreclosure laws that are necessary for institutional financing for such things. And then, when such things were settled, the government’s own smart idea, one which it took a lot of pride in, backfired very badly. Now housing for the needy will remain an unfulfilled promise. Instead, the government has gifted much higher prices, for house construction as well as renting, to the middle, working classes. It is unfortunate that in most, if not all, of the past four years this government has relied on sudden, ad hoc decisions to stimulate the economy, instead of forming multiple, cohesive plans for the immediate and medium terms.
One reason is that the PM keeps changing the finance minister. First Asad Umar set a direction for a few months. Then Hafeez Sheikh changed it. Then Shaukat Tarin changed it once again. In between these Hammad Azhar also got a day or two at least a couple of times. It seems affordable housing didn’t get the attention it deserved in all this confusion.
