The construction package announced by the government is a real step towards resolving the housing issue which will boost dozens of industries, provide jobs to millions and attract billions in investment, a business leader said Sunday.
The giant incentives will boost GDP as well as the confidence of the investors but some steps are needed to boost demand in the market, said Shahid Rasheed Butt, former President ICCI.
He said that the package would strengthen supply side in the employment-intensive sector while the demand side should also be supported by assuring buyers that their source on income will not be asked to bring out billion of rupees of hidden wealth.
Shahid Rasheed Butt said that the interests of masses and not well protected, weak laws are often misused in the construction sector which has resulted in mistrust between developers and consumers which can be bridged by establishing a real estate regulatory authority.
Setting up a construction industry development board will ensure sustainable development of this important sector as there are many issued deterring housing to reach its potential, he added.
He said that the current process of housing finance is very costly and cumbersome which should be improved by jacking up buyer’s affordability to bolster demand for housing.
The dispute resolution mechanism is also very weak which take years damaging interests of developers and buyers which must be developed so that banks can also take interest in this important sector.
The process of getting approvals and other requirements should be further eased to make the move a success, he said, adding that the housing gap is huge and more interventions are needed to plug the supply-demand gap.=DNA