Egyptian billionaire wants to build 100,000 units under Naya Pakistan Housing Programme: report
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An Egyptian billionaire Naguib Sawiris has "expressed his will" to invest in 100,000 housing units in Pakistan under the Naya Pakistan Housing Programme (NPHP), Arab News reported on Friday.
In an exclusive interview with Arab News, Tarek Hamdy, the chief executive officer of Elite Estates ─ a partnership between Ora Developers (owned by Sawiris) and Saif Holdings ─ said, "Naguib Sawiris has expressed his will to invest in 100,000 units of affordable housing to help prime minister (Imran Khan) in his vision toward Pakistan."
"We will use our experience and know-how to deliver this properly to the people of Pakistan," Hamdy added.
On October 10, 2018, Prime Minister Imran Khan launched the NPHP, announcing that 5 million affordable housing units for low-income segments of society would be constructed in five years under the project. Over 40 bidders and construction companies have already applied to provide land and construct housing units under NPHP.
However, Hamdy believes such an expansive project cannot be realise within such a short span of time.
"I think the plan is right but it has to be in stages, has to be in steps. It could be achievable obviously [...] may take few good years, maybe couple of decades to be achieved," he said.
According to Arab News, Ora Developers is already engaged in the construction of a multi-billion-dollar housing scheme named 'Eighteen' which was launched in 2017 in Islamabad along with local partners, Saif Group and Kohistan Builders.
The report added that Sawaris' first investment in Pakistan was in Mobilink.
Hamdy said that the developers wanted to "do more" and "invest more".
According to Arab News, Ora Developers owns a 60 per cent stake in the project in Islamabad which comprises "a five-star hotel, 1,068 housing units, 921 residential apartments, business parks, hospitals, schools and other educational facilities and 13 office buildings, and a golf course".
The net worth of the project is estimated at $2bn, and the developers have set their sights on Lahore, Karachi and Faisalabad as the sites for their next real estate projects.
"I think that our portfolio of real estate could come to $10 billion worth of investments in the next 5-10 years, including all the projects that we intent to do," Hamdy said.
He added that he was confident of delivering on the promise by 2021.
The latest data issued by the State Bank of Pakistan (SBP) shows that despite the government’s willingness to boost housing projects on a large scale, both the financing for housing and number of borrowers only showed modest growth in July-Sept FY19.
The outstanding housing finance inched up 1.8pc to Rs89.79 billion in the first quarter of 2018-19, from Rs88.18bn in same period last year.
Housing is an acute problem in the country with current estimates suggesting a shortage of 10 million units.
According to a previous study by the SBP on low-cost housing, the annual demand for new homes is approximately increasing by 0.7m a year while only about half that demand is currently being met.
Read more
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Low-cost housing: the audacity of hope
Will PTI’s housing programme address the root causes of the housing crisis?
PTI’s focus on housing is laudable, but it’s wrong to suggest private sector can provide all units
Pakistan’s urban policy: Turning cities into slums
On DawnNews
Comments (98) Closed
Jan 20, 2019 02:47pm
For every fool hardy scheme , there will be a dozen businessmen willing to exploit it.
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Jan 20, 2019 02:48pm
This is good news. PM's promises coming to fruition. Investors believe in him.
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Jan 20, 2019 03:02pm
But why? what is he getting?
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Jan 20, 2019 03:03pm
How the figure of 5 million housing units was achieved?
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Jan 20, 2019 03:16pm
Welcome to the fertile land of four seasons and talented soil of the 225 million brave, hardworking and gallant people of the "Land of the Pure."
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Jan 20, 2019 03:18pm
2 decades is too long to survive circular debt we have right now
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Jan 20, 2019 03:20pm
I don't understand how a foreign real estate developer will build Houses for another country? Is it free or pakistan has to payback it in $?
Good model should be followed even from enemies. Why not Pak govt study successful Indian housing policy for homeless (or with deteriorated conditions). It's 100% indigenous and accelerate domestic industries like iron, cement and induce consumption.
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Jan 20, 2019 03:21pm
What the government needs to do is to lay out a very clear strategy about this housing scheme, provide protection for small scale investment, and half of these houses could be built through overseas Pakistani investment. There are millions of Pakistanis who would love to invest in such schemes, but will not do so, because there is no protection for their investment. Provide 100% govt guarantee of that, i.e. no land mafia involvement etc., and many of your problems can be overcome, e.g. this would bring in more remittances, reduce your fiscal deficit, creat more jobs, build more houses. At the same note, resident pakistanis need to learn there are no free lunches. Any investor would want some return, and it's not Pak govt's job to give them free houses, electricity, gas. All has to be paid for.
While the offer of one hundred thousand houses generates headlines, it is the small scale investment by thousands and millions that would generate real benefits.
Any takers in PTI government?
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Jan 20, 2019 03:23pm
Egypt and Pakistan, Brothers for Life
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Jan 20, 2019 03:27pm
Fake news.
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Jan 20, 2019 03:30pm
Egypt itself is surviving on IMF loan and American benevolence.
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Jan 20, 2019 03:38pm
Experience in Middle east has shown, do not involve Egyptians for any project. They always end in scams or failures.
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Jan 20, 2019 03:48pm
Mr Naguib Sawiris is a true friend of Pakistan. Lets wish him the best of luck
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Jan 20, 2019 04:01pm
Kill your own skills and businesses (like Bahria town) and award the work to foreigners.
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Jan 20, 2019 04:04pm
You guys are lucky to have a sincere PM who focuses on development for all, hence the sudden convergence from the world. In India, millions are protesting today for basic rights. Wishing peace and prosperity for all.
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Jan 20, 2019 04:14pm
Expressed his “will”... Whither Billionaire “wants” ?
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Jan 20, 2019 04:21pm
As though,in Egypt all have shelter over their head.
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Jan 20, 2019 04:24pm
Building houses are no great problem. But required infrastructure...?
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Jan 20, 2019 04:27pm
Good luck... Pakistan zindabad... Pakistan is changing towards success prosperous
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Jan 20, 2019 04:33pm
A couple of decades is too long for 100,000 units. He is just planning long term milking of money from the government. Be careful with Egyptians as they have the most unstable government and anything can change anytime
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Jan 20, 2019 04:36pm
The owner of Saif holdings that wants a joint cooperation with that Arab group is in PTI and closely associated with one senior member of PTI. Conflict of interest anyone?.
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Jan 20, 2019 04:41pm
Encouraging investment news.
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Jan 20, 2019 05:07pm
If we can get five big builders like Emaar and a few from the Western world to build 100,000 houses each, it can revive the sagging economy. These companies should ideally make houses in barren lands of Sindh in close proximity to natural and mineral resources so that these new cities/city can become self-sustaining. They should be allowed to make a fixed net margin 15-20% after adjusting for currency effects.
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Jan 20, 2019 05:16pm
PTI should now produce a complete plan on how they intend to deliver on the promise of making 50 million houses and its time frame.
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Jan 20, 2019 06:00pm
Definitely not for the poor of Pakistan. Just another Corporate way of making money.
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Jan 20, 2019 06:00pm
Excellent
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Jan 20, 2019 06:05pm
The government should consider all aspects in view before deciding the location the size and designs of these houses. I believe if built on elevated land and not too big such developments will be good.
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Jan 20, 2019 06:19pm
Any low cost houses built is a blessing for the poor, so the more the better. With regards to meeting the target of 5 million units in five years, better a target than no target
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Jan 20, 2019 06:42pm
DHA and Bahria Towns builders and developers, why they can't do this? One advice, please do NOT build all as a community, otherwise, there will be lot of discrimination in the society and you will fail to make a Nation. These residents will be treated like from another planet, very poor, unfortunately I have to write the truth.
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Jan 20, 2019 06:45pm
Great news. This shows the confidence of foreign investors in IK government. Exxon Mobil, Cargill and now this Egyptian realtor .... everyone is queuing up and it will be good for Pakistan in the long run.
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Jan 20, 2019 06:51pm
Oh dear this project will be given to mr aneel mussarat Uk property tycoon and friend of IK I guess.
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Jan 20, 2019 06:53pm
Tarek Hamdy says the plan may take a couple of decades to complete. This thought should inject a sense of realism into the project.
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Jan 20, 2019 06:53pm
Even a very elementary and basic house would cost about Rs1.5 million each and 5 million houses would cost about Rs. 7,500 billion, on today's prices.
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Jan 20, 2019 07:05pm
The latest realistic assessment by Elite real estate, a professional builder of international repute that with the right environment existing, it can build 100:000 housing units in two decades, should be an eye opener to those in the present govt. advocating construction of 5 million housing units in 5 years period. If one could read between the lines correctly that those 18 others showing interest in this venture by combining efforts & resources,would be able to deliver only 2 million units in 20 years period.
Looking at magnamity & complexity of the problem, one has to carryout a through analysis of inputs such as land, infrastructural requirements, material & manpower availability etc. The builders selecting Karachi, Lahore & Islamabad, already suffering due to water shortages & other utilities, congestion & expensive land, assured building materials supply, pose a real issue for such a venture.Unless, a realistic approach is not adopted, this gigantic task may end in a failure
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Jan 20, 2019 07:05pm
@brr,
modi trolls jealousy evident!
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Jan 20, 2019 07:06pm
Egypt itself is a poor country living on borrowed and donated money.
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Jan 20, 2019 07:09pm
Why the Egyptian billionaire invest in his own country. Egypt is not particularly doing very good financially. Always looking for Saudi Alms.
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Jan 20, 2019 07:26pm
I hope that this project of the constructing houses could be done in a fair, transparent and honest way. We cannot afford another housing scandal.
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Jan 20, 2019 07:31pm
Egyptian experience not needed. Been in the gulf, know how they work.
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Jan 20, 2019 07:42pm
Lockup local builders and get foreigners in.. great going naya pakistan..
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Jan 20, 2019 07:43pm
@bhaRAT©,
I can imagine... no sense...
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Jan 20, 2019 07:48pm
@Prateik, what's your point? Its his money as a billionaire.
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Jan 20, 2019 08:03pm
We keep hearing so and so is "interested" in doing such and such. But so far nothing on the ground.
We want to see groundbreaking now or hold your peace.
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Jan 20, 2019 08:04pm
I could not make out from the article if the houses were being built for free or for money.
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Jan 20, 2019 08:06pm
I wish Imran Khan best of luck and pray may he be able to deliver all he promised to the nation.
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Jan 20, 2019 08:08pm
Please just have a look at his current housing scheme prices, before suggesting that it could in any way be beneficial to common man.
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Jan 20, 2019 08:10pm
@MG, He is neither Nawaz Shariff nor Zardari. He is Imran Khan the best PM for Pakistan..
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Jan 20, 2019 08:14pm
Read everybody especially the supporters of PMLN and PPP, the Honest, Hardworking and Trustworhy PM of Pakistan. He is the hero and loved by all the patriotic Pakistanis. Thank you Imran Khan. Where were you all these years?
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Jan 20, 2019 08:18pm
@SajjadX, "But so far nothing on the ground."
How long did it take to build 'jangla bus'? Go check!
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Jan 20, 2019 08:34pm
He should get some tips from Baharia township promoters how business is done by in Pakistan.
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Jan 20, 2019 08:57pm
@bhaRAT©, how much was spent on jangla bus in peshawar. Go check. And why is still not running? Go check.
You are a pti planted troll. Admit it.
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Jan 20, 2019 09:17pm
Respect for Pakistan is restored by an honest person IK. No one liked to extend hand to the corrupt leaders.
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Jan 20, 2019 09:18pm
Why do we need overseas developers who are going to take the much needed foreign reserves.
Why not use Malik Riaz..at least he is a Pakistani and will keep it in Pakistan
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Jan 20, 2019 09:21pm
Every investment will be welcomed.
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Jan 20, 2019 09:24pm
This project of 5 million houses is gigantic in its range, and one has to plans its realistion very carefully taking into the local environment.
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Jan 20, 2019 09:24pm
This is a business and if the Govt. provides guarantees and conducive environment, Pakistani billionaires would also not hesitate to invest and earn money. There is no harm in it and as every investment is profit oriented. Why this Egyptian billionaire is not investing in his own country, where millions are Egyptian people fall under the category of poverty and like Pakistanis, they are working in majority as labourers in Middle East Arab countries like Saudi Arabia. Please do not trap the people, instead of constructing houses, it is better to improve governance, restore confidence of people in the government, invest in social sector (health and education), provide vocational education, promote investments in SMEs and etc.
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Jan 20, 2019 09:29pm
Profit
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Jan 20, 2019 09:50pm
@SajjadX,
You are a Maryam media cell "planted troll. Admit it."
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Jan 20, 2019 09:54pm
Let him help poor in Egypt, why he wants to part in Naya Pakistan.
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Jan 20, 2019 10:02pm
5 million houses = 50 lac houses, it is equivalent to building an entire city, looks like a ponzi scheme in the making.
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Jan 20, 2019 10:12pm
@SajjadX,
You were talking about "nothing on the ground"; not cost.
Stick to the point, don't take a different turn when you have no answer!
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Jan 20, 2019 10:19pm
Plz no outside Egyptian investment required in our housing sector. We have Malik Riaz who can execute it well enough.
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Jan 20, 2019 10:27pm
@Dr. Salaria, Aamir Ahmad, then why you live outside Pakistan?
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Jan 20, 2019 10:33pm
Nothing is completed so far from the promises made, look at the tracker carefully. Why you show 1 promise was completed?
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Jan 20, 2019 10:35pm
As long as no corruption is involved, I am all for foreign investment in Pakistan. A track record of the investor is at hand in the form of Mobilelink business venture. Maybe Pakistani businessmen in this category can learn a few good strategies (hopefully that demonstrated efficiency and no-corrupt practices) for business in this process
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Jan 20, 2019 10:39pm
What we want is foreign investment in engineering, electronic communication industry. Why cant cell phone designers and manufactures be pursued to to establish their units in Pakistan atleast for Pakistani market.
So far housing is concerned, government should speedily develop land with complete infrastructure, lay out housing plans( plotting) and lay out simple effective laws for mortgages against advance by Banks to individuals. I am sure five million houses will be built in ten years by individuals and developers.
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Jan 20, 2019 10:41pm
@Jalbani Baloch, How do you know that this company is not involved in booming construction activities in the housing sector in Egypt, where many such schemes ongoing, some completed & high numbers are in the planning stages.
I, being an investor, have first knowledge of these happenings. Now if the same process where industries providing cost effective prefabricated building elements are thriving, & by using vertical construction options, is replicated in mentioned cities, low cost & affordable housing units can be built real fast. But the real $10 million question remains, that do we have entrepreneurial expertise in the public sector to take up such a gigantic task?
Looking at mess we have made in managing 195 public sector enterprises including PIA, PSM, WAPDA, & Railways, creating a loss of Rs. 1.4 trillions so far & adding on, one shivers on the prospects of such a vital venture going nowhere, merely due to expected mismanagement of few causing misery to thousands of investors.
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Jan 20, 2019 10:42pm
Whether you like it or not Malik Riaz can do it, more comfortably in time. A blanket amnesty be given to any/ all who invest in such project. The Sharifs, and Zardaris, may join Malik Riaz for an gigantic accomplishment, and please no politics in this project. The Egyptians are not expected to work at low margin, they are smart businessmen, and there’s no compulsion to invite foreign investors in housing sector, which our domestic tycoons can handle well.
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Jan 20, 2019 10:43pm
@imitiaz ali khan, You are absolutely right brother, as both these countries have similar issues to begin with. Stay safe. .
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Jan 20, 2019 10:54pm
Start this scheme immediately to bail out depress masses.
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Jan 20, 2019 11:39pm
The people of Pakistan welcome the Egyptian billionaire to participate in the Naya Pakistan Housing Project. This shows great respect and credibility of PM Imran Khan, as foreign countries and companies are lining up to help. This never happened during PPP and PML governments, as unfortunately they had no respect or credibility in the world due to their dishonesty and corruption. Pakistan is now open for mutually beneficial business with the world. This would greatly help regional stability and world peace.
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Jan 20, 2019 11:45pm
@Amjad Durrani Engineer USA. , Whatever is your source of information it is totally wrong. You don't need to go China, Come to India and see what a state can achieve with mission mode of housing for poors.
The secret behind this success is, no particular govt took it as their solo credit but forwarded it to next govt to set new goals of achievement and work on it. What IK want? Credit or to start a mission for homeless people?
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Jan 20, 2019 11:50pm
His will to invest says it all...wonder why he does not invest in his own country..egypt is no heaven on earth they could use his help if help is the intention..
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Jan 21, 2019 12:05am
@Amjad Durrani Engineer USA: Time will tell you that these are fancy ideas and they have nothing to do with reality. Affordable housing in Pakistan sounds like old wine in new bottles. It can never be successful whatever the will is shown by the Govt. This concept is workable only in middle or high income countries, but unfortunately majority of Pakistanis are living below the poverty line. You may only see prosperity in few big cities, but most of the population live in villages, towns and cities, where the poor cannot afford two times meals. Therefore, I still believe that the Government must not get involved in this unfeasible scheme, and neither it can promote public and private partnership in this area. However, the Govt. must strengthen and establish SME Banks, which can be pumped long term loans by international organizations such as WB, ADB, IsDB and etc. and then they can lend on long term basis to poor to construct their own houses.
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Jan 21, 2019 12:06am
@Saif Zulfiqar, can you substantiate your claim with proof from the ground? What he has achieved so far? Any contract signed? FDI brought? Reform placed on parliament? Black money returned?
Give him time to prove himself.
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Jan 21, 2019 12:22am
Couple of decades that is too long, a time. Baharia is then better than them.
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Jan 21, 2019 12:28am
If no corruption, people will invest?
Make conditions for investment.
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Jan 21, 2019 01:13am
"Naguib Sawiris" is probably Egypt's Riaz Malik.
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Jan 21, 2019 01:13am
Kuch nahin hone ka
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Jan 21, 2019 03:35am
Just keep corruption out , make it transparent , there should be a private independent organization that should certify the genuineness of the project.
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Jan 21, 2019 03:47am
@Ranajyoti, You got it wrong my friend. Having been to city of Calcutta & seeing thousands of homeless people virtually living on sidewalks & in slums in a cradle to grave situation, does provide any proof that elsewhere situation to be nonexistent. Pakistani cities whose landscape drastically changed after 9/11, due to mass migration, depict more or less similar unfortunate situation.
The issue here is not to prove any nation to be better than the other, but to ponder upon how this gigantic problem is to be solved in Pakistan. On one hand we have a backlog of millions needing shelter & on the other it is getting compounded with each passing day due to population growth rate of 2.6% per year.
This issue is very difficult to resolve in a few years period but requires a persistent and continued onslaught by the present as well as succeeding govts. in finding a workable solution to complex technical juggernaut, outlay of resources, management skills & above all political will of govt.
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Jan 21, 2019 04:22am
@MG, Money...what else you imbecil.
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Jan 21, 2019 04:31am
@Jalbani Baloch, In construction engineering, we always advocate adoption of system engineering approach, where a large number similar houses in terms of covered area, design & type of material used is bring into play a factor called economy of scale. Such houses in large numbers can be built in a short span of time & at affordable cost, by using factory supplied prefabricated building components. Such components which have a better quality control & essy to install by factory trained labour, is a cost effective solution to building of low cost housing schemes.
The options are very clear, provided govt. handover developed land with infrastructural facilities to builders, who using prefab units carryout it’s installation to get paid through govt. arranged banking channels. The govt. working as manager make sure timely completion of such projects. The property remaining mortgaged with financial institution till the allottee payback cost in easy monthly installment over 20 years period.
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Jan 21, 2019 06:09am
@MG, Investors invest money to make money. They don't just jump into something if there is no profit to be made. If I get the opportunity to invest and make money then I would do the same. Hope you get it.
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Jan 21, 2019 06:30am
Anyone who believe in this fantasy scheme definitely living in fools paradise.
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Jan 21, 2019 06:37am
please learn to stand in line like decent people...………..act like rest of civilized world does.
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Jan 21, 2019 06:37am
@ajay, How many of these 'western pakistanis' professing love for Pakistan want to come back to live in the country.
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Jan 21, 2019 09:08am
Halwa for the world with 'MADE IN PAKISTAN' written on top. We welcome any one who can get into the powerful lobby at work currently in the country and has his photographs with the prime minister of Pakistan splashed over the media. He has only to book a one way ticket for himself and his family to the moon and never get caught in this country. Rest is fine for him and his coming generations.
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Jan 21, 2019 09:41am
All these so-called extending helping hands by the Gulf Countries will drag into the conflicts between the Gulf Countries. Iran versus others. If one accepts help it should be kept in mind that there will be some strings attached. It is far better to be self reliant and sort out the problems without external help. It might take time but independence is guaranteed. Remember how the British entered
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Jan 21, 2019 11:53am
Do we have any amount of dignity left??
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Jan 21, 2019 11:57am
@Zak, Experiences of Srilanka African nations and many more doesn't teach any lesson that you start lecturing on image of Egypt?? Use your tiny brain before you comment.
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Jan 21, 2019 03:25pm
100k units seem more practical which is only 2% of the target 5M units...
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Jan 21, 2019 03:30pm
@Siraj, Now what's that
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Jan 21, 2019 06:09pm
@MG, Still there are many good people on earth. A good example is A. S. Edhi. Every one is not Nawaz Shareef & Zardari.
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Jan 21, 2019 07:23pm
I'm pretty sure the Egyption developer is not giving Pakistanis a favor but is there to exploit the loot of Pakistan with Pakistanis. One way or another, he will double or triple or even quadruple his money or more but no favor. You can't ever expect a favor from a rich businessman otherwise he will be a poor man. There must be a big prize for him in it.
Best way would be to do a feasible study and see what's better. Instead of building homes by developers, the government can provide cheaper lands to first time owners with that are couple with at least 1 kid family and provide financial support or a loan so each family with first time owner with lower income bracket can build with there own loaned money.
Otherwise, as we know the real-estate MF agents will turn them into another investment adventure.
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Jan 22, 2019 01:01am
How much are these affordable houses going to cost the public per unit?
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Jan 22, 2019 08:32am
@Zak, Well, thousands of years ago, they built pyramids.
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Jan 22, 2019 11:05am
He is investing, not gifting
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