Haloki declared suitable for NPHS flats

LDA governing body approved construction of 4,000 residential units in first phase

LAHORE:

After a preliminary survey and environmental impact assessment, Punjab Environment Protection Department has declared Haloki area suitable for construction of Naya Pakistan Housing Scheme (NPHS) apartments.

Lahore Development Authority (LDA) had sought opinion from the provincial environment department, as required by the law, for construction of LDA City Naya Pakistan Housing Residential Apartments. The authority wants to construct 4,000 residential apartments under Prime Minister Imran Khan’s flagship housing scheme.

The LDA governing body recently approved construction of 4,000 residential units with an estimated cost of Rs10 billion in Haloki in the first phase.

The meeting participants were told that the authority planned to construct the apartments on 563 kanals of land in Mouza Haloki in a period of one year.

As many as 125 blocks of ground plus three storey apartments, each comprising of 32 residential units, will be built in the first phase. Mosques and other amenities will also be provided in the area.

The governing body had also approved construction of necessary infrastructure, including roads, water supply and sewerage system, sidewalks, water treatment plants and other facilities on 8,500 kanals of land reserved for constructing 35,000 apartments.

It also approved planning proposal (PC-1) amounting to Rs20 billion for the purpose.

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The authority had also approved a financial model proposed by a consultant to make the construction of the apartments viable.

Mortgage financing facility by the Pakistan Housing Authority as well as the banks for prospective buyers interested in purchasing the apartments also came under discussion and it was highlighted that the purchaser will have to pay only 20% of the cost as down payment while the remaining 80% cost will be transferred by the banks to the escrow account of the project.

The authority had announced that all citizens could avail mortgage financing facility by Naya Pakistan Housing Authority and the commercial banks will now be eligible for purchasing the apartments.

Pakistan Mortgage Refinance Corporation (PMRC) had also signed a master guarantee agreement with six commercial banks to offering financing to making housing affordable under the NPHS.

A credit guarantee trust with the PMRC as trustee had been set up by the government with the support of State Bank of Pakistan (SBP) and funding by the World Bank.

An official of the central bank highlighted that to promote affordable housing, especially for the low- and informal-income segments, the credit guarantee trust will provide risk coverage of up to 40% to primary mortgage financers on a first loss basis.

During an agreement signing ceremony held last month, SBP Deputy Governor Jameel Ahmed said that the risk coverage of mortgage portfolio under Government Markup Subsidy facility provides due comfort to banks in extending housing finance to the low-income segment for purchase or construction of new houses.

 

Published in The Express Tribune, January 25^th, 2021.