KARACHI: Pakistan’s builders and developers breathed a sigh of life on Thursday following reports that Karachi would soon see investments worth Rs1.5 trillion in its housing sector after the country’s apex court lifted a ban on the construction of high-rise buildings in the port city.
In March last year, the Supreme Court had issued a ban against the construction of high-rise buildings in Karachi due to the non-availability of water. However, the apex court on Tuesday retracted its decision, thereby making it once again legal to construct skyscrapers in the megacity.
According to the Association of Builders and Developers (ABAD), the restrictions had stalled work on 500 projects, freezing investments worth Rs600 billion.
“The work on 500 plots will start as soon as the authorities give us the go ahead. We expect that within six months we will be able to mobilize Rs600 billion in the housing sector and will see the full impact of investment,” Muhammad Hassan Bakshi, chairman of ABAD, told Arab News on Thursday.
“Our raw material is plots which are ready and within a year we will be able to start work on another 500 projects worth Rs1.2 trillion,” he added.
Pakistan is currently facing a shortage of 10 to 12 million housing units in the country as per varying estimates, including those filed by the World Bank which state that the country needs up to 700,000 units per year to cater to its growing population. “The ban had sent negative signals to the investors both local and foreign,” Bakshi said, adding that the “price of accommodation had increased by 20 to 25 percent”.
ABAD said it expects a 20 percent price correction will be made once the supply of housing units resumes.
There are currently 40-50 allied industries associated with the construction and real estate sector, most of which are small and medium enterprises. “The construction sector contributed around 2.8 percent to the GDP during FY18. With over 50 industries indirectly associated with the real estate construction sector, the overall economic impact is much higher,” a report by Karandaaz Pakistan, a development finance company, stated.
“The economic activity spurred by the construction will directly or indirectly benefit around 400,000 people including steel, cement, crush providers, labors etc,” Bakshi said.
Commenting on the shortage of water – the main reason for the top court to issue the ban in the first place — Bakshi said: “We would need water after three to four years which is the project life period. We expect that by then major water projects including K-4 and RO plants would be ready to supply water and there would be no problem.”
With an aim to attract more investments to the country, Prime Minister Imran Khan promised to build 5 million houses in five years, with the estimated cost of the project amounting to Rs15 to 17 trillion.
Bakshi, who is also the member of the task force set by the prime minister for the housing sector, said that work on the regulatory framework — including legislation, financials, and foreclosure laws — is in progress.
Real estate developers and builders, on their part, urged the government to introduce measures which would ensure ease of doing business so that the private sector could help them realize the dream of constructing five million houses at the earliest. “We want a fast track approval of projects, clear title of land, financing for builders, financing for buyers, and improvement of infrastructure,” Bakshi said.
Builders also hoped that overseas Pakistanis would step forward to contribute toward the vision too. “Yes, foreign investors were waiting for the right opportunity to invest in the country. Every expat Pakistani wants to have his or her house back in the home country,” Hanif Gohar, former chairman of ABAD, told Arab News.
Bakshi added that a part of the home remittances sent by Pakistanis is being invested in the real estate sector. “Around $8 billion worth of activity goes in the real estate sector every year, according to THE ministry of Housing and Works,” he said.
Sky is the limit for Karachi after SC lifts ban on high-rise buildings
Sky is the limit for Karachi after SC lifts ban on high-rise buildings
- Pakistan’s real estate sector to be pumped with Rs1.2tr investments
- Work on 500 projects worth Rs600bn to start in six months following apex court’s decision
Pakistan Chairman Joint Chiefs of Staff: China corridor is ‘stabilizing force’ for South Asia
- General Sahir Shamshad Mirza emphasizes Pakistan’s strategic bond with China at a major Beijing forum
- He hails CPEC as a game-changing initiative to ensure greater regional connectivity and economic growth
ISLAMABAD: Chairman Joint Chiefs of Staff Committee General Sahir Shamshad Mirza said on Friday the China-Pakistan Economic Corridor (CPEC) was not just beneficial for his country’s economy but also a “stabilizing force” for South Asia.
CPEC is a massive infrastructure and economic development initiative that was launched in 2015 as part of China’s Belt and Road Initiative (BRI). It aims to enhance connectivity between the two states through a network of roads, railways, energy projects, and special economic zones.
The primary goal of CPEC is to improve Pakistan’s infrastructure, boost trade, and create jobs while providing China with direct access to the Arabian Sea via Pakistan’s Gwadar Port.
It is widely viewed as a strategic partnership between the two countries that has the potential to reshape the region’s economic geography.
“Our relations with [the] People’s Republic of China are truly special and time-tested relationship that not only serves as a testament to our all-weather strategic cooperative partnership but also as a cornerstone for peace and stability, both for Pakistan and the region that are today fraught with challenges,” Mirza said while addressing the Security Cooperation and Asia-Pacific Prosperity and Stability Session of the 11th Beijing Xiangshan Forum in China.
“Ladies and gentlemen, [the] China-Pakistan Economic Corridor is a flagship project of China’s Belt and Road Initiative,” he continued. “It is an initiative of enhanced regional connectivity and economic development. Indeed, CPEC is not only a game changer for Pakistan’s economy, but also a stabilizing force in South Asia.”
The 11th Beijing Xiangshan Forum is being held from September 12 to 14, with unprecedented participation from over 100 countries and organizations. Under the theme of “Promoting Peace for a Shared Future,” this year’s event features critical discussions on global security, regional stability, and innovative technologies in defense.
The Pakistan government is already negotiating “CPEC 2.0” to mark the second phase of the joint corridor project carried out by the two countries, shifting the focus from infrastructure and energy projects to industrial cooperation, agriculture, socio-economic development and technological advancements.
CPEC 2.0 also aims to develop new Special Economic Zones (SEZs) to attract foreign investment and boost industrial growth, as part of Pakistan’s economic revitalization strategy.
– With input from China News Service via Reuters
Pakistan launches probe into ex-PM Khan’s ‘threatening’ social media post targeting state institutions
- Khan criticized powerful people, saying they were putting the country’s stability at stake to maintain power
- Information minister say FIA is investigating who is operating Khan’s social media account and from where
ISLAMABAD: The government has directed the Federal Investigation Agency (FIA) to investigate a “threatening” social media post by former Prime Minister Imran Khan in which he criticized Pakistan’s military and judiciary, Information Minister Attaullah Tarar announced on Friday, adding a team of interrogators was currently questioning him in prison.
Since the collapse of his government in a parliamentary no-confidence vote in April 2022, Khan has repeatedly alleged that his ouster was orchestrated by US officials in Washington with the complicity of Pakistan’s military, accusations that both the US and Pakistani authorities have denied.
Khan, who has been imprisoned for over a year on multiple charges, has continuously criticized Pakistan’s military and intelligence services, accusing them of involvement in a failed assassination attempt on him during a protest in November 2022.
In a recent social media post, he likened the current military leadership to General Yahya Khan, accusing them of risking the country’s stability to maintain power. He also named Chief Justice of Pakistan Qazi Faez Isa among the powerful individuals who he said were upholding the “system of injustice and brutality” against his Pakistan Tehreek-e-Insaf (PTI) party.
“The FIA is investigating the matter of the threatening post by PTI’s founding chairman,” the information minister said in a statement.
“The founding chairman of PTI shared an anti-state post on social media and posted material against Pakistan’s integrity,” he continued, adding he had targeted the institutions of military and judiciary.
The minister said that an FIA team had arrived at Adiala Jail to determine who was operating Khan’s social media account and from where.
Tarrar did not elaborate on why he considered the ex-premier’s lengthy post threatening, though it urged Pakistanis to “come out for a street movement to protect our freedom.”
Khan’s legal spokesperson, Naeem Haider Panjutha, also confirmed that a “four-member team” from the FIA’s Cyber Crime Wing had gone to the prison to interrogate the former prime minister while condemning the development.
Dhaka’s National Press Club marks 76th death anniversary of Pakistan’s founder
- Participants say Bangladesh would have been treated like Kashmir if it had not been part of Pakistan in 1947
- They emphasize the need for closer relations with Pakistan and China, asking their country to honor MA Jinnah
ISLAMABAD: In a significant development, the National Press Club in Dhaka arranged an event in remembrance of Pakistan’s founding father, Muhammad Ali Jinnah, to mark his 76th death anniversary with Urdu songs, poetry, and recitals this week, according to a report published by a Bangladeshi newspaper on Thursday.
The tribute to Jinnah comes at a time of profound political change in Bangladesh, where just weeks ago, a student-led protest toppled Prime Minister Sheikh Hasina Wajid’s government, marking the end of her 15-year rule.
The unrest led to the toppling of statues of Sheikh Mujibur Rahman, the nation’s founding father and Wajid’s father, amidst widespread dissatisfaction with his daughter’s increasingly autocratic governance.
The event in remembrance of Pakistan’s founding leader is particularly striking, given Bangladesh’s historical resentment toward Pakistan over the events of the 1971 independence war, signaling a re-evaluation of the country’s political and historical narratives, driven by a turbulent domestic environment and evolving sentiments toward its neighbors.
“If Bangladesh had not been part of Pakistan in 1947, we would have been in the same position as Kashmir today, with the Indian junta holding weapons to our necks,” one of the speakers identified as Muhammad Samsuddin was quoted as saying by Dhaka Tribune. “Bangladesh gained independence because of Pakistan, which Jinnah helped create.”
“Why should we change the name of Allama Iqbal Hall or Jinnah Avenue,” he asked. “These changes were made because [New] Delhi wanted them, but we did not. Bangladesh must foster strong relations with China and Pakistan.”
Another speaker, Nazrul Islam, said Bangladesh should continue to have good relations with Pakistan.
“If Jinnah had not been there, Pakistan would not have existed, and without Pakistan, Bangladesh would not exist,” he continued. “Jinnah is the father of our nation, but we do not acknowledge it.”
“We must preserve our brotherhood, and I hope that both Jinnah’s birth and death anniversaries will continue to be observed here every year,” he added.
The Bangladeshi newspaper informed the Pakistani high commissioner was invited to the event, though he could not attend the ceremony and sent his deputy.
Two Pakistani students studying in Bangladesh were present at the gathering and performed Urdu songs dedicated to their country’s founding father.
Pakistan’s army chief vows support to police amid rising militant attacks in Khyber Pakhtunkhwa
- Militant factions have relentlessly targeted the cops in the province, leading to police protests in KP
- General Munir vows to maintain ‘the hard-earned peace’ during his visit to the Orakzai tribal district
ISLAMABAD: Chief of Army Staff General Asim Munir praised the police and other law enforcement agencies (LEAs) in Pakistan’s northwestern Khyber Pakhtunkhwa (KPK) province during a visit to the Orakzai tribal district on Friday, vowing to provide all possible support to them in performing their duties.
The army chief’s visit comes at a time when militant factions operating in the area have relentlessly targeted the police, killing over 75 of them since the beginning of the year, leading to protests by law enforcement personnel in various parts of the province against these killings.
Security in the region has mostly been dominated by the army, which has been fighting proscribed militant factions like Al Qaeda and the Pakistani Taliban for about two decades, with the police seeking greater government support to empower them to deal with extremist violence in the area.
The military’s media wing, Inter-Services Public Relations (ISPR), informed General Munir received a briefing on the security situation in the area along with the ongoing intelligence-based counterterrorism operations that have been undertaken to ensure stability in the restive tribal district.
“Pak Army will continue to provide all out support to KPK Police and other LEAs in enabling them to perform their duties in newly merged districts,” the army chief said, referring to the tribal areas bordering Afghanistan that were integrated into Khyber Pakhtunkhwa nearly six years ago.
He paid tribute to all the uniformed personnel of the police and security forces who had laid down their lives while performing their duties, saying “the hard-earned peace” achieved through their sacrifices would be maintained at all costs.
The army chief also appreciated the support of the local population in assisting the security forces with their efforts, noting that their positive role was essential in sustaining peace in the region.
Earlier, General Munir laid a floral wreath at the Martyrs’ Memorial and interacted with troops in Orakzai who had participated in recent counterterrorism operations in the area.
Pakistan stocks rally after policy rate cut, positive developments on IMF front
- The benchmark KSE-100 index rose by more than 800 on Friday morning
- It declined in the afternoon session to close at 79,333, up by 315 points
ISLAMABAD: The Pakistan Stock Exchange (PSX) on Friday rallied by more than 300 points, according to the PSX website, following a policy rate cut by the central bank and positive developments with regard to the country’s International Monetary Fund (IMF) bailout.
The benchmark KSE-100 index rose by more than 800 on Friday morning, but declined in the afternoon trading session to close at 79,333, up by 315 points.
A day earlier, the central bank cut its key policy rate by 200 basis points to 17.5 percent — the third straight reduction since June as the country looks to spur growth as inflation eases.
“The MPC assessed the real interest rate to still be adequately positive to bring inflation down to the medium-term target of 5–7 percent and help ensure macroeconomic stability,” the State Bank of Pakistan’s Monetary Policy Committee said in a statement, announcing the cut.
“This would be essential to achieve sustainable economic growth over the medium term.”
Separately, the IMF said its board would meet at the end of this month to discuss Pakistan’s new $7 billion bailout program that was agreed in July.
“All matters with the IMF have been settled amicably,” Finance Minister Muhammad Aurangzeb said in a statement on Thursday. “These matters will be finalized in the meeting of the IMF board this month.”
Pakistan’s sovereign dollar bonds also rallied on Thursday, with the 2031 maturity trading 1 cent higher to bid at 79.93 cents on the dollar, according to Tradeweb data.
