ISLAMABAD:
The prime minister has approved 35 per cent increase in the rental ceiling for over 500,000 federal government employees across the country.
The Ministry of Housing and Works forwarded a summary requesting a 100 per cent increase in the house-rent ceiling for all federal government employees, which would have cost around Rs7 billion. The supporting argument was that this would reduce demand for government accommodation, especially in the federal capital. A ministry official said that the approved rental ceiling would cost about Rs2.5 billion.
“The Prime Minister only approved a 35 per cent increase because of the economic crunch in the country,” commented Housing and Works Minister Akram Khan Durrani.
On September 23, the minister told the Senate Standing Committee on Housing and Works that there were about 19,500 applicants in Islamabad alone who wanted government accommodation. “If the PM approved the summary for doubling the house-rent ceiling, the demand for on government housing may reduce to some extent,” he stated.
House-rent allowances are granted to eligible government employees who are not living in government housing. According to ministry records, there are about 172,000 federal government employees in Islamabad Capital Territory.
A ministry official said on the condition of anonymity that the 100 per cent hike was proposed after a countrywide market survey and an analysis of inflation trends.
The government has increase the rental ceiling after four years, the usual time-frame of reviewing the process.
Pakistan Public Works Department Director General Attaul Haq said the hike will decrease pressure on the ministry, which was flooded by complaints regarding the lower ceilings.
All not well at ministry
Since the arrival of the new minister in June, the ministry has yet to see the appointments of heads of several departments that have spent years with the positions vacant. National Housing Authority and Pakistan Works Department both lack directors general, the latter since 2009.
Federal Government Employees Housing Foundation Director General Waqas Ali is a grade-19 officer but also holds acting charge of joint secretary (grade 20). Meanwhile, Estate Office Management is being run by a section officer for the last three months.
The absence of officers and arrival and departure of secretaries has put many projects on halt. Announced by the prime minister in October last year, the PM Housing Scheme plan entails building 500,000 houses in five years. The government has also allocated Rs60 billion for the project in the current budget but no further progress.
The minister has also accepted that there was already delay in the housing schemes of capital and soon the hurdles would be removed.
Besides, 588 housing units are also being developed on Kuri Road under Pakistan Housing Authority Foundation (PHAF). The project was started in March 2012 and was due for completion in 18 months, but the ministry has yet to settle issues between the contractor and the department.
Construction of over 3,200 residential plots of Federal Government Employees Housing Foundation (FGEHF) in Bhara Kahu has also been in the doldrums since 2009.
Published in The Express Tribune, October 3rd, 2014.
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Oh! our Beloved Leaders Think deeply?????? A Low level Pakistani EMPLOYEE in Saudi Arab can buy a home in Pakistan after serving 2 to 4 years.......while a Pakistani employee in BPS-17 can never buy a home even after serving 25 years in Pakistan...
It is strange that the government and the officials of ministry of finance believe that by increasing money for hiring they are helping government officials while the fact is that the owners of such houses and flats immediately increase the rent correspondingly which is always more than what the government allows. I could never fathom why this money cannot be given to the government employees with their salaries as it happens at universities and many other semi government organizations. The government pays a whole army of bureaucracy just for making the employees go through a long and tedious procedure but would not increase the house rent that is given with the salary. How stupid and selfish!