KARACHI: Former provincial minister Mian Zahid Hussain on Wednesday lauded the initiatives of the central bank to boost construction activity.
The revival of construction activity will improve almost seventy allied sectors and provide jobs to the millions of daily wagers, he said. Mian Zahid Hussain said that apart from the steps taken by the central bank, the issues of steel, cement, and construction sector should also be resolved to get maximum benefit.
Talking to the business community, the veteran business leader said that weak laws have always blocked the revival of the construction sector and provision of affordable houses to poor and middle-income groups as banks were not ready to invest in this sector due to high risk.
However, now the situation is changing as the SBP has directed commercial banks to lend Rs330 to this sector warning them of action in case of failure and offering incentives if to those banks that met the target.
The government has also given an option to the banks to cover 40 percent of the defaults which will boost house financing in the country which is less than one percent of the GDP.
The success of these steps will ensure the implementation of the vision of Prime Minister Imran Khan to provide five million houses to the poor. He noted that increasing prices of steel bars, cement, and other construction material has panicked the investors which should be noticed and steps should be taken to resolve the issues.