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Tag: ABAD

  • ABAD denounces IMF demand to stop incentives

    ABAD denounces IMF demand to stop incentives

    KARACHI: Mohsin Sheikhani, Chairman Association of Builders and Developers of Pakistan (ABAD) has strongly denounced the demand of the International Monetary Fund (IMF) for ‘Unwinding’ the two key measures for the promotion of housing and construction activities and said that the suggestion of IMF will further weaken the economy of Pakistan.

    In a statement on Tuesday, ABAD chairman said that according to a World Bank’s estimation for Pakistan, the real estate sector makes up 70 percent of the national wealth and this industry contributes significantly to the GDP.

    READ MORE: ABAD demands abolishing regulatory duty on steel bars

    The World Bank’s report itself speaks of the reality that how our national economy is dependent on real estate and construction industry, he said adding that finance has remained a serious issue for construction industry and if the demand of IMF is accepted by the government it will be the last nail in the coffin of Pakistan’s struggling economy.

    He said that the present government of Imran Khan, foreseeing need of housing in Pakistan, had announced to build 5 million low cost houses during election campaign and after coming to power announced Amnesty Scheme for real estate and construction (also gave status of industry to construction) with the facilities of bank financing on special rates of housing. In view of World Bank’s report the facilities given for real estate and construction was a right step, he said.

    READ MORE: FBR reviews tax incentives to construction industry

    Chairman ABAD said that due to Covid 19 Pakistan’s economy has suffered in many ways but it does mean that the main support for the economy itself be uprooted. IMF has put forward this demand to the State Bank of Pakistan saying that wind down these measures “out of concerns for financial stability. Banks’ housing lending targets could present risks to financial stability”.

    He said that this is ironic that World Bank accepts that real estate industry makes up 70 percent wealth and it contributes significantly to GDP. In the light of the World Bank’s report and need of housing the government should outrightly reject the demand of IMF and continue special measures for the real estate and construction industry because it is the fact that whenever any developed country faces recession, it gives top priority to construction industry to stabilize the economy.

    READ MORE: Some obstacles challenging construction sector: PM

    Moreover, governments all over the world facilitate their people to purchase first home through subsidies and finance and Pakistan is also a part of this world then why IMF is trying to deny the right of people to have their dream homes, he asked adding that in Pakistan slums or Kutchi Abadis are growing; specially in Karachi more than 54 people are forced to live in Katchi Abadis due to lack of financing is IMF wants Pakistan to become a Kutchi Abadi country?

    However, if the government will succumb to IMF’s pressure in this matter, the economy of Pakistan will collapse and no one will be there for revival of national economy, he warned.

    READ MORE: Ordinance notified to extend tax amnesty for construction sector

  • Builders, developers stop work on all projects in protest

    Builders, developers stop work on all projects in protest

    KARACHI: Builders and developers have announced to stop construction work on all their projects from Friday, November 26, 2021 against the declaration of null and void to approved projects.

    Mohsin Shekhani, Chairman, Association of Builders and Developers Pakistan (ABAD) in a statement said that work at all the approval projects in Karachi will stop functioning.

    “Despite the approvals of the buildings and projects from all the government agencies they stand null and void,” he said.

    He urged the government to tell the builders and developers, who are the final authority from the get approval.

    Shekhani said that ABAD is against the illegal encroachments and illegal constructions. “Illegal projects if constructed it is a duty of government agencies to check and give NoC,” he added.

    ABAD is following approvals strictly. But despite approvals and getting permission the moves to shatter the confidence of the people, he added.

    “We are backstabbing the overseas Pakistani and local investors who have invested millions of rupees,” he said. Confidence of Overseas and local investors would be perturbed, he added.

    From Friday work at projects in Karachi, Hyderabad and other cities will be halted, he announced.

    Slowly the work in other parts of the countries will also be stopped, Shekhani added.

    ABAD demands abolishing regulatory duty on steel bars
  • MTO Karachi asks taxpayers to file income tax returns

    MTO Karachi asks taxpayers to file income tax returns

    Hameed Memon, Chief Commissioner Inland Revenue of the Medium Tax Office (MTO) in Karachi, has issued a heartfelt appeal to taxpayers, urging them to file their income tax returns as a national obligation and a service to the country.

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  • Builders, developers demands action against price hike

    Builders, developers demands action against price hike

    KARACHI: Fayyaz Ilyas, chairman, Association of Builders and Developers of Pakistan (ABAD), has demanded stern action against the cartel of cement manufacturers. He said that cement and steel are basic raw material for the construction industry

    In a statement issued on Tuesday, he said that continuous increase in prices of cement and steel bars will badly damage the construction industry and the government will not be able to achieve the target of Naya Pakistan Housing Scheme.

    ABAD chairman said that cement and steel manufactures started increasing prices of cement and steel bars when construction activities came to take off mode with the announcement of a Special Package for the construction industry by the Prime Minister.

    He said that continuous increase of cement and steel bars prices by cement and steel manufacturers is a conspiracy against Naya Pakistan Housing Scheme and national economy.

    He urged Prime Minister Imran Khan to take action against cement and steel manufacturers just like the government had taken action against sugar mills owners and appoint a commission.

    He said that due to ever increasing prices of cement and steel, builders are facing difficulties to complete their projects and on the other hand common people are unable to build their dream homes. 

    Fayyaz Ilyas said that the construction industry, after agriculture, is the largest job provider and if the conspiracy against this industry is not stopped, thousands of skilled and unskilled workers will lose their livelihood and the national economy will have irreparable loss.

    He said that it is high time to reactivate Competition Commission of Pakistan to take action against cement and steel manufacturers’ cartels.

    He recalled that steel bar price per ton was Rs110,000 in November 2020 and at present this price is Rs178,500, which shows an increase of more than Rs68,000 per ton during the last 10 months.

    On the other hand cement prices are also raised to Rs680 per 50-kg bag. About 60 percent of total cost of a high rise building consists of cement and steel while this ratio is 30 to 40 per cent in a normal residential project.

    He said that in this situation the federal government will not be able to fulfill its promise of constructing 5 million low cost houses.

    ABAD seeks amnesty scheme extension for six months
  • ABAD seeks amnesty scheme extension for six months

    ABAD seeks amnesty scheme extension for six months

    KARACHI: Association of Builders and Developers (ABAD) has urged the government to extend the amnesty scheme for six months to document another Rs1 trillion.

    Fayyaz Ilyas, Chairman, ABAD, in a statement said that the investment in Construction Industry will double to Rs2 trillion if special construction package is extended at least for six months.

    Quoting the statement of Information Minister for State Farrukh Habib that an amount Rs1 trillion had been invested in construction industry after announcement of Amnesty Scheme, chairman ABAD said that a number of projects could not be registered under the scheme announced by the Prime Minister due to hurdles in approval, especially in Sindh.

    “If these projects could get chance to register under this scheme, the investment will double from Rs1 trillion to Rs2 trillion,” he said.

    Fayyaz Ilyas said that Prime Minister Imran Khan had extended date of Amnesty Scheme upto June 30, 2021. However, due to fourth wave of Covid-19 and hurdles in approval of projects, date of Amnesty scheme may be extended up to December 31, 2021 to fetch more investment in construction and real estate business.

    He said that despite second and third wave of Corona construction activities, especially production of steel, cement and other construction materials is on the rise due to Amnesty Scheme.

    Many of allied industries are planning expansion to meet rising demands and some of them have imported billions of rupees machineries to expand their industries, which shows that if the amnesty scheme is extended, the economy of Pakistan will become a vibrant and the dream of making Pakistan Asian Tiger could be realized, he hoped.

  • Amnesty scheme should be extended for one year: ABAD

    Amnesty scheme should be extended for one year: ABAD

    KARACHI: The Association of Builders and Developers (ABAD) has demanded the government of extending the amnesty scheme granted for boosting of construction sector.

    ABAD Chairman Fayyaz Ilyas in a statement demanded to extend amnesty scheme for real estate and construction industry by at least one year.

    He said that due to unprecedented situation created by Corona pandemic all over the country and long delay in approval of building plans in Sindh a number of builders and developers could not register their projects under this amnesty scheme.

     Fayyaz Ilyas said that Prime Minister Imran Khan had announced and once extended Special package for real estate and construction industry for economic growth through construction industry because this industry is considered the backbone of the economy all over the world.

    Under extended package, source of income will not be asked for investment in real estate and construction upto 30th June, 2021, Fixed Tax Regime for builders and developers upto 31st December, 2021 and project completion period was extended upto 30th June, 2022.

    Chairman ABAD requested the government to extend these periods atleast upto 30th June, 2022, 31st December, 2022 and 30th June, 2023 respectively so that those people can avail this package who could not avail due to pandemic and lengthy delay in project approvals.

    He said that Pakistan’s economy like other parts of the world has suffered a lot due to corona pandemic.

    It is evident that despite the second wave of corona pandemic production of cement, iron bars, paints, tiles etc have created new records, he said adding that to continue momentum of the economic growth the government should extend the Special package for real estate and construction industry otherwise the results achieved through this package will go in the vain.

  • ABAD demands abolishing regulatory duty on steel bars

    ABAD demands abolishing regulatory duty on steel bars

    KARACHI: The Association of Builders and Developers (ABAD) on Tuesday called on the government to abolish the Regulatory Duty (RD) and Additional Regulatory Duty (ARD) on the import of steel bars, emphasizing the need to stabilize their soaring prices in the domestic market.

    (more…)
  • ABAD welcomes date extension for construction package

    ABAD welcomes date extension for construction package

    KARACHI: The Association of Builders and Developers of Pakistan (ABAD) has warmly welcomed Prime Minister Imran Khan’s decision to extend incentives for the construction industry until June 30, 2021.

    (more…)
  • ABAD terms hike in steel, cement prices as conspiracy against Naya Pakistan Housing

    ABAD terms hike in steel, cement prices as conspiracy against Naya Pakistan Housing

    KARACHI: Association of Builders and Developers (ABAD) on Tuesday expressed concerns over sudden rise in prices of steel and cement, the basic raw material for construction industry, and termed it as a conspiracy against provision of affordable housing scheme launched by the government.

    Fayyaz Ilyas, Chairman, ABAD in a statement expressed deep concern over sudden increase in steel and cement prices.

    The ABAD chairman demanded the federal government to take stern action against these unscrupulous elements, who are trying to sabotage steps of the government for reviving the national economy.

    He said that despite the fact that most of raw materials are local, cement and steel manufacturers have raised exorbitant prices of cement and steel to a level of Rs625 per 50 kg bag of cement and Rs126500 of steel per ton, which is no way justifiable and it looks that cement and steel manufacturers cartels are hell bent upon to crush the construction industry.

    He said that cement and steel are main ingredients of construction but manufacturers of these two materials are busy minting money without any justification and the Competition Commission of Pakistan looks helpless to take any stringent steps against these cartels, he added.

    Fayyaz Ilyas said that the construction industry is the second largest job providing sector after agriculture that is the reason why Prime Minister Imran Khan is giving due importance to this industry and has started Naya Pakistan Housing scheme for those people who otherwise are unable to own their dream home.

    But, he lamented that steel and cement cartels are trying to sabotage a noble cause of the Prime Minister and dent the national economy.

    He appealed the government to take stern action against the steel and cement cartel to save the construction industry and the national economy.

  • FBR not to ask source of money invested for housing projects by December 31: MTO Chief

    FBR not to ask source of money invested for housing projects by December 31: MTO Chief

    KARACHI: Federal Board of Revenue (FBR) will not ask source of money to be invested till December 31, 2020 in a new housing projects, Abdul Hameed Memon, Chief Commissioner, Inland Revenue, Medium Taxpayers Office (MTO) said on Wednesday.

    “This is a unique program announced by the Prime Minister of Pakistan. The tax rates have also been reduced under this package,” he said while addressing an event organized by Association of Builders and Developers (ABAD).

    However, he said that those who availed the scheme will require to complete the project by September 2022.

    He urged the ABAD members to avail the opportunity as growth in the construction sector would generate employment.

    He said that the government through amendment in tax laws had announced the package for the construction sector. “The package has two types of benefits: immunity from questioning the source of investment; and reduced rate of income tax in the shape of a fixed tax regime for builders and developers.”

    The chief commissioner said that the package would help in enhancing activities in the construction sector and result in significant economic growth.

    Earlier, Abdul Hafeez, Commissioner Inland Revenue, MTO gave a detailed presentation to builders and developers on the immunity from Section 111 of Income Tax Ordinance, 2001. This section attracts penal action for persons who conceal assets from tax authorities.

    The commissioner said that the section 111 would not apply to an individual if the person deposited the money in a new bank account up to December 31, 2020 or having ownership / title of the land invested as on April 17, 2020.

    In case of a company or an Association of Persons (AOP), the section shall not apply if a single purpose company or AOP is registered between April 17, 2020 and December 31, 2020.

    The commissioner outlined other exemptions and benefits under the tax package as the investors would have exemption from the requirement of withholding tax on purchase of building material except cement and steel.

    They will also have exemption from the requirement of withholding tax on acquisition of services relating to construction except those from companies.

    The persons, who are engaged in low cost housing projects, will be granted 90 percent reduction in fixed tax liability, the commissioner said.

    Besides, dividends paid by builder or developer companies shall not be liable to tax and there shall be no withholding on the payment of these dividends, he added.

    Chairman Association of Builders and Developers of Pakistan (ABAD) Fayyaz Ilyas has demanded of the Federal Government to extend date of registration for Incentive Package of Naya Pakistan Housing Scheme upto 31st December 2021 and also extend time period for the completion of housing projects under this scheme.