CM announces Rs5b relief package for plaza victims

Rs1.6 billion will be given in subsidy on loans mark-up

LAHORE:

A week after the fire incident, Punjab government has announced Rs5 billion relief package for traders of the Hafeez Centre whose businesses were affected.

Punjab Chief Minister Sardar Usman Buzdar, on Thursday, announced this relief package during a visit to Lahore Chamber of Commerce and Industry. He highlighted that the government will provide soft loans to 207 victims, in collaboration with the Punjab Bank, to help resume their businesses. A sum of Rs1.6 billion will be given in the form of subsidy on loans mark-up, he added.

On directives of the provincial government, Bank of Punjab has already opened camp office at IT Tower to offer financing facility for purchasing of supplies, construction and rehabilitation of shops and purchase of shops in Hafeez Center. The bank is offering loans at minimum markup of 3%.

Since local administration sealed the Hafeez Center building, on recommendation of a 14-member committee constituted by the Punjab government, to inspect the building structure for safety traders have started to shift their businesses in nearby plazas.

Speaking to The Express Tribune, various traders indicated they are shifting to adjacent buildings temporarily. “We will return to Hafeez Centre once building is restored to its previous condition,” said a shopkeeper, Malik Hamid.

He highlighted that several businesses have already started to shift to Jeff Height, Al-Hafeez Centre, Gulberg Centre, IT Tower and other nearby buildings. Sudden increase in demand of shops and offices have increased rents and property prices in almost all nearby plazas. He pointed out that shops and offices for which nobody was willing to pay Rs10,000 to 15,000 rent are currently being offered Rs20,000 to Rs25,000 owing to high demand.

A property dealer, Amjad Majeed, disclosed that ground and lower ground floors of Jeff Heights have been completely booked. Similar is the situation of other nearby plazas and shopping centers. A couple of weeks ago nearly half of these plazas and buildings were empty but this unfortunate fire incident has created an opportunity for owners of these shops and offices.

Responding to a question, Majeed also confirmed that rents have been jacked up owing to high demand. He, however, pointed out that as per standard norm generally shopkeepers are signing 11-month rent agreements but they have all right to terminate contract in middle.

“I believe it will be impossible for several small businesses and kiosk owners to return to Hafeez Center since all their assets have been reduced to ashes. They may settle in these new plazas permanently but it all depends how much time the government and management take in restoring the Hafeez Center in its original condition,” he maintained.

A member of the Hafeez Center traders’ union, Muhammad Khurram said though the government will take some time to formulate mechanism for disbursement of relief package. But traders of Hafeez Center are capable enough to rebuild their businesses. The government should hand over the building to the plaza management so people start working to restore their businesses.

Published in The Express Tribune, October 30^th, 2020.