Incentives for construction sector hailed

ABAD chairman says critics must appreciate unusual circumstances Pakistan is dealing with

KARACHI: The head of the Association of Builders and Developers of Pakistan (ABAD) has endorsed the budget revealed by the Pakistan Tehreek-e-Insaf (PTI) government on Friday, hailing in particular the provisions pertaining to the construction sector.

Speaking to The Express Tribune, ABAD Chairman Mohsin Sheikhani said all critics of the budget had to appreciate the extraordinary circumstances that both Pakistan and the world were dealing with.

"Covid-19 has wreaked havoc on the economy, not just in Pakistan but globally. Every country in the world is experience severe downturn. People are losing jobs and many businesses are going bust. Economies that rely on tourism have been especially devastated," he said.

"In this sort of situation, there is not much the government could have done and we have no choice but to scale down our targets - at least until the pandemic is over. The budget may have been termed traditional by some quarters, but we need to appreciate how extraordinary current circumstances are."

Sheikhani, however, had some suggestions for the government going forward. "Right now, when everyone is worried about their health, it is only natural that economic activities will be limited. No one, for instance, is going to buy a house amid the kind of uncertainty we have now," he pointed out. "But to spur commercial activity and kickstart our economy, the government should provide loans to common citizens. This would help not only those who live here but any expats that might return on account of losing their jobs."

The government can also reduce red tape and bureaucratic hurdles, Sheikhani added. "My suggestion is hand over provincial subjects and approval authorities to the private sector. We are trying to support the government and we want to work to improve things in Pakistan, but the biggest hurdle right now is the number of hoops you have to jump through in order to get a project started. So the government would do well to bring in some long-term thinking."