KARACHI: The government must revisit values of industrial plots to appropriate level as many industrialists have stalled expansion plans while the flight of capital may increase, Vice Chairman of Businessmen Panel and former president FPCCI Zakaria Usman said on Thursday.
The new values for industrial plots have been increased up to 600 per cent from July 1, 2010 to July 1, 2016, thus creating uncertainty among businessmen and investors. This also includes a 20pc increase made by the Sindh government from July 1, 2016.
Mr Usman said the new values have emerged as a great threat to the industrial sector.
As per the SRO issued by FBR on August 2, the price of open industrial plot in Category I have been hiked from Rs2,200 per square yard to Rs12,000, up by 445 per cent. The Category 1 areas include SITE Industrial Area, FB Area and Landhi Industrial Area.
The valuation of plots in Korangi Industrial Area, Bin Qasim Industrial Area and North Karachi Industrial Area, falling in Category II, have been increased from Rs1,100 per yard to Rs8,000, showing an increase of 627pc.
The value of constructed area has been increased from Rs386 per sq foot to Rs3,000, increasing its value by 667pc while the cost of construction hovers around Rs500 to Rs1,500 per sq foot, he informed.
After the SRO, the price of open industrial plots in Category I has reached to almost Rs60 million per acre while the price of plot falling in the area marked as Category II has reached almost to Rs40m.
He claimed Pakistan is becoming a trading state with many industrialists preferring trade due to energy crisis, taxation and refund issues and scarcity of water.
He urged the government to immediately withdraw the aforementioned SRO and revise the values appropriately.
Owner of Parekh Estate at Clifton, Abdul Wahab Parekh said for industrial (built up plot), the new values for plots falling in category I, II and III have been raised to Rs3,000 per square feet from Rs386.
Giving valuation rates of various areas of Karachi, he said in residential open plot category, the new value is Rs35,000 per square yard in A-I category which was 14,850 in July 2010.
For Category I, II and III has been raised to Rs25,000, Rs12,000 and Rs6,000 per square yards from Rs9,625, Rs5,500 and Rs2,475.
For residential (single storey) the new valuation rate for Category A-I, I, II, III, IV is Rs40,000, Rs32,000, 20,000, Rs11,000 and Rs6,000 on July 1, 2016 as compared to Rs23,100, Rs12,375, Rs7,700, Rs3,300 and Rs2,475 on July 1, 2010.
For residential (ground plus one storey), he said the new valuation rate for Category A-I, I, II, III and IV is now quoted at Rs50,000, Rs40,000, Rs25,000, Rs13,750 and Rs7,500 as compared to rate of Rs28,875, Rs15,469, Rs9,625, Rs4,125 and Rs3,094 on July 1, 2010, Wahab said.
rom July 1, 2016, the valuation rate for commercial open plot A-I category has been fixed at Rs100,000 per square yards which was Rs34,500 in July 1, 2010. For Category 1, II, III and IV – the new valuation rate has been increased to Rs75,000, Rs60,000, Rs25,000 and Rs19,000 from Rs21,563, Rs10,350, Rs5,175 and Rs2,760 per square yards.
For commercial single storey, the new valuation rate for Category A-I, I, II, III, IV and V has been raised to Rs67,500, Rs54,000, Rs35,000, Rs18,000 and Rs10,000 per square yards from Rs41,400, Rs28,750, Rs14,950, Rs6,900 and Rs4,658 prevailing on July 1, 2010.
For flats, he said, the new valuation rate for Category A-I, I, II, III and IV has swelled to Rs5,000, Rs4,500, Rs2,500, Rs1,500 and Rs1,000 per square feet from Rs2,475, Rs1,788, Rs990, Rs495 and Rs413 prevailing on July 1, 2010.
