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The newly elected Pakistani government promised to build 5 million affordable homes in their election manifesto. The country is facing the severe lack of housing that surpassed 10 million units. In Pakistan, there is a requirement to construct around 1 million homes annually but there are only 0.2 million constructions. Masses believe that the promise made by PTI before elections are near to impossible to fulfill. But today we will explore the possibilities and guide how the government can fulfill their promise easily.
According to general estimation, the cost of constructing 2-bedroom affordable appartment is around 1 lac rupees (10,000 USD). The cost is low due to the bulk quantity. When the quantity goes up, the cost goes down. for the purpose, the government will have to use its own land. Let’s say that the average cost is 1 lac rupees. So the calculation for the 5 million homes will be:
1 home = 1 lac
5 homes = 5 lac
50 homes = 5 million PKR
50,000 homes = 5 billion PKR
5,000,000 homes = approx USD 50 billion
Despite the fact that 50 billion USD is not a small figure, but the newly elected government has many ways to reach this target. There are approximately Pakistani $200 billion is saved in Swiss Banks. Billions of dollars have been smuggled. The government should bring back this looted wealth of Pakistan. The government can also recover this money through relentless accountability. According to economy gurus, Pakistan’s shadow economy is greater than the real economy with the ration of 70-30%. The government can recover back the black money through different techniques such as new currency notes and asking the source of income.
The government can also utilize property tax for the construction of homes. Provincial and Federal governments annually collect billions of rupees from the real estate sector. These tax money could be used for this purpose. Another option to look for is the direct foreign investment. Many Pakistani expats and governments are keen to invest in Pakistan. All they need is safe and sound, business-friendly atmosphere. Many foreign living Pakistanis trust their new government and willing to invest millions to billion on a single call from their PM Imran Khan. Utilising these resources, the government can achieve the target of building 5 million affordable homes.
In the next blog, we will thoroughly discuss the benefits of building these affordable homes and the plan of allocating these homes. Till then, stay tuned.