House reconstruction to cost Rs1tr

KARACHI:

Pakistan is expected to reconstruct around 2 million houses worth around Rs1 trillion in the flood rehabilitation phase that will ramp up economic activities and create vast job opportunities in construction and allied industries.

Heavy rainfall and flash floods, which broke a 30-year record this year, have damaged and destroyed wide-scale infrastructure and housing units across the country.

“As per data of the government and national as well as provincial disaster management authorities (NDMA and PDMA)…around 2 million housing units are expected to be reconstructed in rural and urban areas with the beginning of rehabilitation phase,” Sono Khangharani, CEO Thardeep Microfinance Foundation (TMF), said while speaking at a press conference organised by the National Bank of Pakistan (NBP) on Wednesday.

The foundation has so far financed around 1,400 low-cost housing units over 10 to 12 years until the recent flash floods hit the country.

“Rehabilitation and reconstruction activities are likely to get underway after two to three months once the standing rainwater recedes,” Khangharani said while talking to The Express Tribune on sidelines of the conference. “Reconstruction activities may last two to three years.”

Reconstruction work will directly and indirectly activate construction and 25 allied industries, and provide job opportunities to a large number of labourers as well as daily-wage earners.

The cost of constructing a low-budget housing unit has spiked to a minimum of Rs500,000 and maximum of Rs750,000 in the wake of soaring inflation. Earlier, the low-budget housing unit cost a mere Rs60,000 post-2010 floods, he recalled.

The government should make sure the reconstructed houses have basic amenities including drinking water purification units and solar panels to make lives and livelihoods comfortable, he emphasised.

“The reconstruction of 2 million low-cost housing units may cost a total of Rs1 trillion if it takes Rs500,000 per unit,” he said.

Besides, the reconstruction of infrastructure including water hand pumps, tube wells and communication network may further support economic activities.

Global and domestic research houses have revised down Pakistan’s economic growth forecast to around 2.5% for the current fiscal year following the devastation caused by the floods. The government had originally targeted 5% economic expansion for the year.

NBP President and CEO Rehmat Ali Hasnie, while talking to media, announced a contribution of Rs50 million on behalf of the bank to the Prime Minister’s Flood Relief Fund.

The bank has also collaborated with TMF and the Rural Community Development Programme for the provision of water purifiers to the flood-stricken families to give them access to clean drinking water.

Speaking at a separate event, Bank Alfalah President and CEO Atif Bajwa pledged to provide assistance worth Rs2.18 billion ($10 million) to the flood-effected people during the relief and rehabilitation phase.

“We have planned to spend a big portion of the planned contribution during the rehabilitation phase including the reconstruction of houses,” he said.

Published in The Express Tribune, September 8^th, 2022.

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