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Table of Contents

Introduction:

The Prime Minister of Pakistan, Imran Khan Niazi, presented an ambitious housing plan post-general elections in 2018. The plan highlighted the vision of fulfilling the ever-increasing housing needs of the growing population. The residential program was titled Naya Pakistan Housing Scheme or Naya Pakistan Housing Program (NPHP).

The plan addressed some main issues such as:

  1. Delivering 5 million homes to needy people over five years
  2. Generation of 100 million jobs for needy people over five years

Real estate and construction is demanding job physically and financially that poor people could not afford throughout their lifetime in normal circumstances. The construction sector involves almost 30-70 industries directly and indirectly.

The number of attached industries has huge potential for job creation, proving to be great news for laborers. Increased construction means more investment and job opportunities for people belonging to all classes of society.

The NPHP is an ambitious project envisioned to uplift the economy, real estate industry, and society’s middle and lower class living standards. Such a high-profile project acts as a catalyst in the financial matters of the country.

Since its inception, the critiques were skeptical of the project for its scale and current economic condition of the country. But the premier ensured that the public-private model would endure the magnitude of the project.

The Prime Ministers of Previous governments also projected such plans, but none got it from paper to the ground. But the NPHP has already kicked off. This project targets the needy people who could not bear the expenses of owning a property and then constructing a house on it. All the necessary measures are in place to accomplish the project within five years. The dedicated task forces are working round the clock to deliver it on time.

Lack of Affordable Housing & Concept of Naya Pakistan Housing Scheme:

The present Government is concerned about providing every possible relief to needy citizens. The NPHP is part of that relief. The property and construction prices are all-time high that is out of financial range for poor people.

Naya Pakistan Housing Scheme

The Naya Pakistan Housing Scheme also addresses the lack of affordable housing by providing 5 million residential options to needy persons. The population increase, property rents, and overall inflation rates make it impossible for the poor to own a residential place.

The Government has planned to provide policies, rules, and regulations for these projects. The private sector will take the rest of the effort and finances into account in coordination with the public sector.

Furthermore, the authorities will also ensure the safety of the investors` interests, making it a profitable, financial, and social opportunity. All the stakeholders will be taken care of in any way possible.

Naya Pakistan Housing Scheme Vision:

To witness the growth of Pakistan sustainably, the Government has taken up this initiative. All the government machinery will be used to make it a profitable and viable project while fulfilling the residential needs of the poor. The Government envisions that this project will offer affordable housing to all the citizens of Pakistan with equal opportunity.

Naya Pakistan Housing Scheme Mission:

The mission of NPHP is to address the increasing housing shortage in Pakistan with the steep rise in population. The NPHP is a part of this mission while keeping in view affordability and upholding quality.

All stakeholders and their profitability will be ensured to overall uplift the shattered economy of the country. The main objective of such projects is to provide equal opportunity to the needy and poor people for better living standards.

Naya Pakistan Housing Scheme Core Values:

The Naya Pakistan Housing Scheme is based upon solid core values such as follows:

  1. Growth-oriented
  2. Achieving goals
  3. Offering assistance
  4. Fulfilling residential needs
  5. Adaptable and solution-centric

Housing Resource Focal Persons for Naya Pakistan Housing Scheme:

Following are the focal persons related to Naya Pakistan Housing Scheme:

  1. Chairman/Expert Consultant: Mr. Zaigham M. Rizvi
  2. Architect/Planner: Mr. Arif Hussain
  3. Spatial Planning Expert: Dr. S. Shabih-ul-Hassan Zaidi
  4. Architecture Planning Expert: Dr. Fariha Tariq
  5. Architecture Planning Expert: Dr. Sana Malik

Urban, Rural housing and Slums:

Residential problems prevent our focus from diverting to rural areas, and here arises the problem. Because still, most of the country`s population lives in rural areas, and their living conditions are worse than the urban areas.

Yet, we keep improving the urban areas instead of rural areas where more attention is required. The latest statistics also show that more than 60% of Pakistan`s population lives in rural areas. That’s why more and more people from rural areas are moving towards urban areas, searching for better living and economic opportunities.

This migration is also why the resources of cities and existing facilities are under stress. The situation in the cities is getting worse day by day due to this pressure and the need for new residential areas is increasing.

The ratio of urban migration is estimated at more than 2.5% annually, which is increasing every year. As a result, the ratio of the urban and rural population will be 50-50 by 2025.

The Government must inform Pakistan’s public and private sector about the ever-increasing urban migration and its effects on urban living. The stats could help understand the need to focus on the rural population that urban growth in Pakistan is around 3% and rural growth is around 1.5%.

The Government must take concrete steps to control the population blast in the country on an annual basis and improve the living and economic conditions in rural areas.

The Government has thoroughly planned to develop and enhance mechanisms to better living standards in rural areas. In this regard, policies, mechanisms, and other processes will be streamlined to solve issues enabling the villagers to live a better life.

The authorities have informed that one-third (1.5 million) of 5 million housing units will be constructed in urban areas to tackle the increasing urban migration and manage the resources more efficiently.

The remaining 3.5 million housing units will be built in rural areas. The residential units in rural areas will be built at lower costs. The reason is that the land and labor prices in rural areas are comparatively much lesser.

Due to high property and rental prices, slums are prevailing at faster rates due to their affordability. Although there is a lack of primary needs such as clean drinking water, sanitation, hygiene, and other things, the affordability of slums makes them an attractive residential place for workers/laborers.

One of the major drawbacks of the slums is that these areas could become the sanctuary for criminals and criminal activities. Slums are built like mazes and complex structures, and such complexities make it easy for criminals to hide and carry out their activities from within the slums.

Government`s Responsibility:

The Government is the custodian of ensuring the rights of the public. Providing safe, clean, and affordable houses to the people is among the top priorities. The officials are aware of the housing shortage in Pakistan, and according to some careful estimates, the housing shortage will rise from 12 million to 20 million.

Mera Pakistan, Mera Ghar Housing Scheme

The target of 5 million housing units in five years is undoubtedly a gigantic task but is achievable if managed properly. As mentioned, the rural areas will be the main focus for which a major chunk of the 5 million figure for housing units will be completed in the rural setups.

Urban-like facilities will be given under this program to bring the rural areas at par with the facilities in urban areas. The facilities will ensure a better life while preserving the cultural originality of the rural regions.

The Government would be required to generate around Rs. 1,800 billion to address the initial shortage of 12 million residential units. With the establishment of the required authorities, the Government has kick-started the project in urban areas.

The Government has also been busy developing the relevant rules and regulations to address the legal requirement for such a huge project.

Some other measures have also been taken to make the construction process more efficient and cost-effective while saving time. Develop research setups to come up with new and better ideas to develop better housing units.

The research and development will assist the Government in meeting the general housing issues and improve overall living standards in Pakistan.

Prime Minister`s Housing Authority:

The increasing housing shortage needs an urgent solution to be implemented without any further delay. As a result of the construction of the housing units, the construction will get the much-needed boom that could contribute significantly to uplifting the country`s economy. Almost 70 industries related to construction will be benefitted from this activity.

The Prime Minister (PM) Imran Khan established a task force named Housing Task Force (HTF) with some highly-qualified persons such as Mr. Zaigham Mahmood Rizvi and 21 other professionals from the housing and finance industry.

The HTF has developed the mechanism for housing units under the Naya Pakistan Housing Development Authority (NPHDA). It is an independent body chaired by the Chairman and Board of directors under the direct supervision of the Prime Minister. Major legal work has already been done through an Act of Parliament.

The previous governments have acutely overlooked the housing shortage. The plans were just verbal or on paper. But the incumbent Government has made efforts beyond just claims. The efforts are visible on the ground.

The private housing sector has become active in providing housing and filling the gap. But, even then, the poor people cannot afford the property at those prices. The lower class of the society is of laborers and other working classes.

These people are socially considered at the Bottom-of-pyramid (BoP), making up 20% of society. The Naya Pakistan Housing Scheme is mainly for the lower-income and middle-income class that is hand to mouth and has limited finances to survive barely.

Eligibility for the Naya Pakistan Housing Scheme:

The State Bank of Pakistan (SBP) provides a markup subsidy for buying and constructing housing units under Naya Pakistan Housing Scheme. This facility will also allow the interested individual to avail bank loans at reasonable markups.

Administrative support of SBP will also be provided as an executive partner with the Government of Pakistan (GOP) and Naya Pakistan Housing & Development Authority (NAPHDA).

Following is the eligibility criteria to avail the Naya Pakistan Housing Scheme:

  • All CNIC holder citizens
  • First-time house owner
  • This facility could be availed for once
  • It is dedicated to people buying or constructing a house

Housing Units Sizes:

There are three tiers of loans for housing units as follows:

  • Tier-1 (T 1): Housing units of up to 125 square yards (5 Marla) covering 850 square feet
  • Tier-2 (T 2): Housing units of up to 125 square yards (5 Marla) covering 850 square feet
  • Tier-3 (T 3): Housing units of up to 125 square yards to 250 square yards (10 Marla) covering 850 square feet to 1,100 square feet

Following is the minimum to maximum price rates for financing housing units:

  • Tier-1 (T 1): Rs. 3.5 million
  • Tier-2 (T 2): Rs. 3.5 million
  • Tier-3 (T 3): Rs. 6.0 million

Loan sizes for the single unit housing units are as follows:

  • Tier-1 (T 1): Rs. 2.7 million
  • Tier-2 (T 2): Rs. 3.0 million
  • Tier-3 (T 3): Rs. 5.0 million

Long-term loans will be mortgaged in favor of financing banks. The Finance Ministry has provided authority to the SBP to debit the GOP account quarterly for the subsidy payment to banks. The due payment will be submitted to the designated financial institutions/banks after submitting the quarterly-consolidated subsidy statement as per the format mentioned by the SBP.

All commercial banks are considered executing agencies, including Islamic Banks and House Building Finance Company Limited (HBFCL). You will also have to fill the application form with basic information.

The processing time will not be exceeding 30 days after submitting all the relevant documentation by the borrower. Banks will be bound to have standardized loan documentation and risk acceptance criteria. State Bank of Pakistan will publish comprehensive information regarding the loans offered as per this program to inform the public quarterly.

Charges:

Loan Tiers Custom Charges Bank Charges
Tier 1 Five percent for the first and seven percent for the next five years KIBOR+250BPS
Tier 2 Five percent for the first and seven percent for the next five years KIBOR+250 BPS (Spread may differ)
Tier 3 Seven percent for the first and nine percent for the next five years KIBOR+250 BPS (Spread may differ)

If the loan duration exceeds more than ten years, the market rate will also be applicable for the duration exceeding ten years.

List of Banks Providing Home Loans Under Naya Pakistan Housing Scheme:

After setting proper rules and regulations from the State Bank of Pakistan for mark-up subsidy, the private sector has also geared up to jump into this profitable matter. Private commercial banks have also come up with their financial loan packages under the guidelines of SBP.

naya pakistan housing scheme loan

Following is the list of commercial banks offering loans under Naya Pakistan Housing Scheme:

  • Meezan Bank
  • Bank Alfalah Islamic
  • HBL Islamic Bank
  • Bank Al Habib
  • Faysal Bank
  • JS Bank
  • Silk Bank
  • Summit Bank
  • Al Baraka Bank
  • Bank of Punjab
  • Askari Bank Limited
  • Allied Bank Limited
  • United Bank Limited
  • Standard Chartered Bank
  • Muslim Commercial Bank
  • MCB Islamic Bank Limited
  • National Bank of Pakistan
  • Khushali Microfinance Bank

House Building Finance Company (HBFC) – Naya Pakistan Naya Ghar:

All Pakistani CNIC holders are eligible to apply under Naya Pakistan Housing Scheme. The people must not own any property in advance, may that be land or constructed house. The person should be the first-time owner. It is a one-time opportunity for a single person. You may also visit the website of HBFC.

House Building Finance Company (HBFC) - Naya Pakistan Naya Ghar

You can also get to know the application and procedures. You can also avail pre-application form. The FAQs also provide the best level of guidance.

The facility is for purchase and construction purposes. The financing ceiling is shown in the table below:

Loan Tiers Charges
Tier 1 Up to Rs. 2.7 million
Tier 2 Up to Rs. 3.0 million
Tier 3 Up to Rs. 5.0 million

For the loan to acquired income range is also set as follows:

At least Highest
Residents: Must fall as per the least criteria for DBR for requested financing

Non-Residents: At least Rs. 50k/month

For Tier 1 and Tier 2: Up to Rs. 0.1 million individual or Rs. 140,000/- household

For Tier 3: Up to Rs. 0.2 million individual or Rs. 250,000/- household

Income Clubbing: A per the currently applicable policy for the borrower, co-borrower, and guarantor

Financing Tenor: 10/15/20 (depending upon the selection of the customer)

Loan to Value Ration: Up to 85:15

Pricing:

For Tier 1 & Tier 2 Fixed @ 5% per year for 1st 05 years fixed @ 7% per year for next 05 years floating rate of 01 Y KIBOR + 2.0 % p.a. (with a floor of 7% and ceiling of 12% to be charged after ten years)
For Tier 3 Fixed @ 7% per year for 1st 05 years fixed @ 9% per year for next 05 years floating rate of 01 Y KIBOR + 2.5 % p.a. (with the floor of 8% and ceiling of 13% to be charged after ten years)

Collateral Specifications:

Following are the collateral specifications:

Tier 1 Housing units/apartments of up to 125 Square yards (up to 05 Marla) with a covered area of up to 850 square feet. It is priced for (market value) at a maximum of Rs. 3.50 million (built under NAPHDA projects)
Tier 2 Housing units/apartments of up to 125 Square yards (05 Marla) with a covered area of up to 850 square feet. It is priced for (market value) at a maximum of Rs. 3.50 million
Tier 3 Housing units of more than 125 Square yards up to 250 SY (10 Marla) or apartments with covered area from more than 850 square feet to 1100 square feet and priced (market value) at a maximum of Rs. 6.00 million

SBP Regulations for Builders Finance:

Following is the eligibility criteria:

  • The Builder must have a valid builder license issued from the concerned building control authority where it had been applicable
  • The Builder must have a minimum of three years of experience and a significant track record of constructions
  • The title of the land must be visible and clear free of any legal or any other kinds of issues
  • Copies of documentation will be submitted along with the application
  • Registration certificate of the company
  • Memorandum and Articles of Association/Partnership Deed/Business Charter (in an instance of single proprietorship)
  • The certificate from Pakistan Engineering Council (PEC), along with the experience certificates
  • A furnished list of technical staff
  • Furnish the list of accomplished projects
  • Any other required documents

Documents about Financial Worth:

Financial institutions such as DFIs/Banks may acquire the following documentation from the Developers/Builders:

  • Financial statements for three years that are audited by a well-known audit firm in an instance when the exposure of a bank does not exceed Rs. 100 million for analysis and record purposes
  • In an instance, the financing amount goes beyond Rs. 100 million, the recent financial statements will be audited by the State Bank of Pakistan approved panel of auditors as per the following method:
  1. Financing amount auditors: Beyond Rs. 100 million up to Rs. 500 million
  2. Above Rs. 500 million
  • Income Tax Assessment Order copy of income tax returns submitted by the company for the last three years
  • Confidential reports on financial credibility

Required Documents Regarding Property Projects:

DFIs/Banks may acquire the following documentation from Builders:

  • Comprehensive concept plan
  • Duly approved building plan
  • Mortgage permission
  • Non-encumbrance certificate
  • No Objection Certificate (NOC) for construction/sale of the housing units from the relevant concerned authorities
  • Furnish a list of contractors and sub-contractors
  • Due permission from relevant authorities
  • Permission from Environmental Protection Agencies (EPAs)
  • Any other required and relevant documentation

Builders` Projects Evaluation:

Following are the assessment criteria of the projects that developers have to deliver:

  • The project must be profitable to pay off its debt
  • Banks/DFIs must avail the technical feasibility report independently that is duly reviewed by a concerned engineering firm with a high reputation within institutions such as Pakistan Engineering Council
  • The financial feasibility report of the said project must be endorsed by a highly reputed auditing firm containing crucial information on economic situations, capital investment, and financial predictions
  • The Banks must also evaluate the developers` financial and other documentation that they submit. This evaluation will be part of the risk assessment. Banks were advised by the Government to critically evaluate any possibility of various risks and their probable negative effects on the viability of the project

Valuation:

Banks will obtain the value of the land and project assessed from PBA approved by the authentic and famous values under the following standards:

  • Financing amount: above Rs. 50 million up to Rs. 100 million. At least one valuer is required
  • Financing amount: above Rs. 100 million up to Rs. 500 million. At least two valuers are required
  • Financing amount: above Rs. 500 million. At least three valuers are required

Legal View:

Following are the legal opinions to be considered:

  • Legal opinion to be obtained from well-reputed law companies on the documentation of the property
  • Mortgage of the plot should be created in favor of Bank
  • In an instance of foreign builders, a Bank guarantee should also be acquired
  • Any other security admissible to the Banks
  • Banks may also observe leverage ratio under the risk assessment process aligned with the SBP PRs of Corporate/commercial banking
  • An account should be generated that will be operated by the Developer and Bank as per Escrow Banking arrangements to observe non-diversion of bank funds, and to make sure that the funds are being delivered and utilized as per plan
  • In an instance of syndicate financing, the financial organization and the Developer, with consent, would have to mention which Bank shall hold the Escrow account
  • All project-related transactions may include disbursement to the contractor or even sub-contractors and collection of money on account of booking of apartments, housing units, or shops.
  • It is made compulsory to make all the needed transactions through cross-Cheque
  • The Escrow account must not be shifted to any other Bank during the financial duration without the prior consent of all the stakeholders
  • Banks must also ensure that the Developers have obtained the takaful coverage for potential risk attached with the project
  • An amount must be sanctioned depending on the information provided by the Developers for the duration of five years. In this regard, Banks could also issue moratorium duration to the Developer as approved by the Board
  • When the project gets the official approval and the stated land is mortgaged with the Bank, the amount may be released to the Developers as per the mutually agreed timetable through an Escrow account held and operated by the relevant Bank
  • Banks should also obtain the e-CIB of Directors and sponsors of the organization to observe a comprehensive exposure and financial health of the entity.
  • Banks should also develop a system for regular observation during the construction stage of the project to make sure the due utilization of funds. For this reason, a foolproof audit mechanism should be undertaken of the accounts of the Project, Escrow account, and any other account if in existence
  • The project’s progress should also be checked at all times by the Banks with the help of well-versed consultants
  • The cash payments will be the primary source of cash payments to obtain the loan by acquiring an assignment of project receivables
  • To make sure the proper protection of the mortgage on assets of the business entity, banks will register their mortgage with the Registrar of the companies so that the security is not mortgaged with any other lending institution
  • After the approval of the loan, the funds must be utilized under strict guidelines of the said institution

Regulatory Bodies Under Naya Pakistan Housing Scheme:

Following are the Regulator Bodies Under Naya Pakistan Housing Scheme:

  1. Naya Pakistan Housing Authority (NPHA)
  2. Real Estate Regulator Authority (RERA)
  3. Abandoned Properties Authorities
  4. Katchi Abadi Authorities
  5. Land Regulations
  6. Abandoned Construction Sites (Proposed)

Naya Pakistan Housing Scheme Initiative:

The main aim of this program is to enhance the living standards of needy people. Another purpose of the project is to fill the gap of the housing shortage that stands at 10 million. The Government also wants to make property ownership affordable and accessible to all people of Pakistan while making construction a booming sector contributing to the economy of Pakistan.

 The main features of the Naya Pakistan Housing Scheme are as follows:

  • Increase the economic activity in the country
  • Offer opportunities to the construction industry while generating huge finances for the economy and job opportunities
  • Increase the loan duration up to twenty years
  • Make the construction process efficient and cost-effective
  • Develop new communities to lessen the load on urban areas
  • Maximum Return on investment for the Developers
  • The program will be able to generate a whopping 10 million jobs as promised by PM Imran Khan, with an addition of three million housing units
  • Each house has the potential to create 20 jobs making the program economy-friendly
  • The project also aims at capacity building of the construction industry while enhancing the skills of the Developers and laborers
  • The estimated uplift of the economy is estimated at around Rs. 15 million over five years

How will the Naya Pakistan Housing Scheme Run?

All the land titles will be certified by the stated Authority. The Authority will also obtain the proposed land while deciding what kind of infrastructure would be required for the said project. The Authority will also decide all other requirements, such as water, electricity, etc.

Builders will be going through a bidding process while offering the best affordable prices for the construction of the project through e-auction. The houses will be delivered depending upon a first-come-first-serve basis.

The funds acquired by the Developers will accomplish the projects, and the financing scheme will guarantee the timely completion of projects. However, the land charges will be paid by the end customer. The land title will be transferred to the Bank, which will be transferring the land to the condominium corporation once the loan is repaid.

The end-user will be required to submit 20% of the unit charges during the construction phase. The loan duration will be up to twenty years, making the loan payment easy for the owner. The installments will also be as affordable as possible. Such measures will ensure the whole process is around 15% to 20% cost-effective compared with the market rates.

Potential in Rural Areas for Naya Pakistan Housing Scheme:

Nature has blessed the rural areas with scenic and sustainable natural resources. The beauty and simplicity of the rural areas are quite captivating, and the majority of the population lives on rural land. From Gwadar to Khunjerab, the country offers a range of land diversity and places to be developed for needy people.

There is no shortage of land or resources; only proper management of the land and resources could do wonders. The poor people living in the rural areas need urgent attention for the improvement of their living standards. This is the reason that the present Government is actively struggling to complete this project.

Prime Minister Imran Khan is paying special attention to accomplishing this gigantic task. The PM is highly concerned for the poor people. The Government is taking every measure into account to address the food security of the needy people.

Housing and other basic needs are the top priority of the officials. Improving the current miserable conditions of poor people is the top-tier priority of PM Khan.

Chairman Mr. Zaigham also informed that the Authority is working round the clock to expedite the process by continuously making it efficient and effective. Affordability is the pivot of this project for the poor and needy people.

Housing Service Cell:

Following are the areas that the Government is focusing on:

Taxes:

The Government has presented several tax incentives while making the whole taxation process easy-going for the taxpayers. These incentives are also focused on offering ease of taxation for the construction industry.

The FBR is also playing an active role in streamlining the processes. The FBR is constantly taking steps to make taxation easier and easier for the people to pay and contribute to the country’s economy.

Mortgage Finances:

The Developers may avail finances for their projects as per various models that may include Tripartite Agreements. Then there is an aspect of retail financing, and the Banks would have to be familiar with the formal income assessment and informal income. Banks do not carry out such practices in usual conditions, but they might have to do this to utilize the funds properly.

Tripartite agreements for finance may involve Developers, Banks, and end customers. For the larger projects, the retail title certification and generation of mortgages will require some diversity. The public must follow any program-related announcements, policies, packages, and press clippings.

New Regulatory Incentives Under Naya Pakistan Housing Scheme:

The State Bank of Pakistan has announced around five regulatory immunities to taxation Banks for financing cost-effective housing schemes. The SBP effort was to offer regulatory conditions to encourage housing and construction-related finance. The Government`s markup subsidy defines the low-cost housing finance.

As a result of these positive measures, the Banks will earn a markup subsidy facility under the low-cost housing finance of the State Bank of Pakistan. Under the relaxation/immunity, the Banks are given exemption using verifiable income for the cause of calculating debt-burden ratio (DBR) in the case of low-cost housing finance where Banks are utilizing income proxies. Another relaxation given to the Banks under this program is that they are exempted from the need to observe DBR in an instance of low-cost housing finance.

This means that those borrowers with dubious income will also be eligible to acquire low-cost housing finance. Banks are also given the exemption from the Internal Credit Risk Rating System’s requirement for low-cost housing finance until the 30th of September 2022.

For the purpose of making the system more efficient for borrowers with liquid securities, Banks have been given authority to extend housing finance for buying or construction purpose of a housing property by submitting their residential property or liquid securities in the form of lieu of equity contribution for the housing finance at the moment of calculation of the loan-to-value ratio.

Prime Minister has been directly overseeing the matters of disbursement of loans to the borrowers. He is briefed in several meeting sessions about the progress of the system from time to time.

Governor State Bank of Pakistan briefed the PM about the disbursement of loans and told that the loans are being given to the borrowers as per the set guidelines, and so far, 7,700 branches of commercial banks across the country are carrying out the lending. These meetings also include the heads of the above-mentioned banks to be on Board and on the same page at all times.

The PM was also briefed about the endless number of applications that have been received by the commercial Banks for low-cost housing finances. The PM was also told that the SBP had launched the complaint cell to assist the people with their queries and complaints.

Additionally, PM was informed by the Deputy governor SBP that the regulatory author had come up with a system to evaluate the performance of the commercial banks in disbursing loans and how efficient this process is performing.

After listening to all of these and several other crucial information/reports on the NPHP, the PM addressed members with encouragement and appreciation for better performance in the future. The PM asked the participants to assist the poor people in any way possible and make the low-cost housing project as beneficial as possible.

In these meetings, PM emphasized the need to enhance the construction sector while offering affordable shelter to the poor. He regarded this Project as National service. The Banks also assured the Prime Minister to carry out every step to provide relief to the poor and needy.

The Chairman Lahore Development Authority (LDA) briefed the PM that LDA has actively participated and carried out its responsibilities. The LDA has started the construction of around 35,000 low-cost housing units. These housing units will only be given to the middle and lower class of the society. The construction will be carried out in phases. In the first phase, 4,000 units will be constructed with 2022 as its completion date.

Government Policy on Housing:

In Punjab, Housing Minister Mian Mahmood-ur-Rasheed kick-started the low-cost housing projects in several cities such as Okara, Lodhran, Bahawalnagar, Faisalabad, Sialkot, Chishtian, and Jhelum.

In Kyber Pakhtunkhwa, the provincial Government has also launched low-cost housing units plans in several stages. These housing units will be constructed in different cities of KPK, and even some of the units have been allotted to needy people through balloting.

The units will be constructed in several cities such as Peshawar, Nowshera, Charsadda, D.I. Khan, and Hangu. The KPK plans to construct 20,000 low-cost housing units in Surizai in Peshawar under Naya Pakistan Housing Scheme.

The Sindh government has just been wasting time, and not a single positive step has been taken in this regard. The Sindh Building Control Authority (SBCA) is the main culprit of this delay. More than 50 Developers and Builders have shown interest in the project, but the incompetency of the SBCA has been a big hurdle since this project was launched (3 years ago). No Government level initiative has been taken in the right direction so far.

In Balochistan, the Government has planned to construct five thousand apartments in Wahdat Colony. These will be distributed to the poor and needy.

The Naya Pakistan Housing Scheme had also been extended to Gilgit Baltistan. Several thousand Kanal land has been dedicated for the creation of thousands of housing units for the needy.

The Federal Government has also planned to construct 2,342 housing units in Islamabad at the location of Sangjani.

Azad Jammu & Kashmir is not falling behind in this sacred project as almost 900 Kanal land has been allocated with plans to construct more than 2,500 housing units.

Projects took up by Federal Government Employees Housing Foundation (FGEHF) in Islamabad & Punjab:

FGEHF Projects: Expected construction sites in Punjab & Islamabad:

  • G+9: 3100 units
  • G+14: 4600 units
  • G+9: 8500 units
  • G+14: 12700 units
  • G+9: 480 units
  • G+14: 725 units
  • G+9: 650 units
  • G+9: 980 units
  • Lahore Cantt, Bedian Road – 30 Kanal
  • Mauza Bajnial, Tehsil Rawalpinid – 520 Kanal
  • Mauza Hakla, close to the Tarno, Rawalpindi – 400 Kanal

Expected construction sites in Balochistan:

  • Jiwani: 200 Acres
  • Pasni: 200 Acres
  • Gwadar: 200 Acres
  • Ormara: 200 Acres
  • Kuchlak Road, Quetta: 89 Acres
  • 986 Houses and 48 Apartments
  • 1620 Houses and 2436 Apartments
  • Quetta 29 Acres – Wahdat Colony 5,000 Apartments (G+14)
  • Gwadar 1577 Acres – 55,000 total) 45,000 apartments (G+14) + 10,000 houses)
  • Fishermen Colony – 54,000 apartments (G+4), 2-bed apartments (750 square feet)

Financial Model:

naya pakistan housing scheme 2020

Following are some of the financial models under Naya Pakistan Housing Scheme:

Affordable Housing Financing – Public-Private Partnership (PPP) Models

The cost-effective housing and slums development is facing several challenges that are as follows:

  • High cost of land
  • Financing the land property by the Developers
  • The absence of a clear title of the document is a serious hurdle to participate by financial institutions and reals estate Developers

For any kind of planning to improve the delivery of cost-effective housing units, government indulgence through financial and non-financial support and policy reforms, financial subsidies, and cross-subsidies would have to play a crucial role in resolving the issues.

Main Goal of Utilizing the PPP in Affordable Housing/Slums:

The plan is to bring together the public-private partnership as an implementation strategy for budget-friendly housing units by strengthening the private and public sectors while resolving successive challenges faced by the real estate and construction industry.

The housing units developed as per the PPP will be cost-effective while developing at a fast pace. These will be built on the public lands, as mentioned above, at subsidized rates to poor and needy people. These housing units will swiftly and effectively address the lack of housing in Pakistan increasing every year.

Model 1: Subsidized land by the Government

Model-1 Introduction:

The governmental authorities will provide the land for the construction of subsidized housing units at faster rates. Efficient construction methods will be incorporated to keep the prices under control. The subsidy of at least Rs. 300K has also been given for housing units to bring relief to the needy people buying the house at subsidized rates with easy installments.

The Developers will be paid their payment depending upon their progress. The government authority will specify the milestones to be achieved by the Developers upon which the payments will be made to them. The milestones will reflect the completion rate and progress of the projects.

Prominent Features:

Following are the Guidelines by the Authorities:

  • The Authority shall develop technical guidelines for the implementation of the program
  • The private sector will take up the design and finances. The private Developers will be responsible for designing, constructing, and finances of the low-cost housing schemes
  • After the units` transfer to the Allottee, the maintenance of the units will not be the responsibility of the government Authority or private Developers
  • The Authority is responsible for compensating the private sector Developers
  • The Authority will also identify the beneficiaries. In this instance, the Authority will develop the qualification criteria of beneficiaries
  • The private sector will hand over the housing units to the government nominated agency
  • The allottees are bound to submit the scheduled payments as determined in advance at the time of the delivery of the housing units

Financial Support to Allottees:

The Government will be providing affordable loans for a specific time duration through financial institutions as mentioned above. The Banks are to provide the loans on pre-determined parameters.

Public-Private Partnership:

The public sector will develop legislations and guidelines, and the private sector will finance and develop the units.

Risk Factor:

The land, subsidy, and trunk infrastructure responsibility will be upon the public Authorities.

Bidding Measures:

Bidding will be fair under the following Model-1:

Risks Risk Allocation
Government Private Developers Financial Institution Beneficiary
Land
Design
Construction
Maintenance
Financing
Cost Recovery
Off-take
Trunk-Infrastructure
Credit Risk

Model 2:

Model-2 Introduction:

The main difference between these models is that in Model-2, the Developers will receive any payment from the Government Authority for delivering the cost-effective housing scheme under Naya Pakistan Housing Scheme. The Developers will be given special permission to construct and sell high-quality, affordable housing units.

The Developers may also use the complete land provided by the Government Authority in exchange for delivering the affordable yet top-quality housing units.

Following are the salient features:

  • The Public Authority will offer the land on lease at affordable costs to the private Developers written in the agreement. Such measures will automatically make the project viable and affordable
  • The Public Authority will develop the technical guidelines for the low-cost housing project implementation
  • The private sector will take up the design and finances. The private Developers will be responsible for designing, constructing, and finances of the low-cost housing schemes
  • After the units` transfer to the Allottee, the maintenance of the units will not be the responsibility of the government Authority or private Developers
  • The private sector partner will recover the costs by themselves earned through selling the low-cost housing units
  • The Public Authority will develop the eligibility of the beneficiaries
  • The private sector will deliver the housing units to the Government or to an entity nominated by the Government
  • The allottees would have to pay the already planned amount for the expenditure of low-cost housing units
  • Loans at an affordable rate for a specific time duration will be granted to the allottees
  • For the trunk infrastructure, the model will be a public-private partnership provided by the Public Authority
  • The responsibility of the land, subsidy, and construction will be upon the public Authority

Bidding Standards: The main objective of the project is to enhance the affordable housing cost to the Government at the number of projects.

Bidding will be fair under the following Model-2:

Risks Risk Allocation
Government Private Developers Financial Institution Beneficiary
Land
Design
Construction
Maintenance
Financing
Cost Recovery
Off-take
Trunk-Infrastructure
Credit Risk

Model-3: Subsidized Housing

Model-3 Introduction:

The Government Authority will provide the land upon which the project will be constructed. The main aspect of this project will be that the Developers will receive the payment from the Government in the form of annuity payments for the duration of up to ten years instead of a one-time lump sum amount.

Salient Features are as follows:

  • The Public Authority will offer the land on lease at affordable costs to the private Developers written in the agreement. Such measures will automatically make the project viable and affordable
  • The Public Authority will develop the technical guidelines for the low-cost housing project implementation
  • The private sector will take up the design and finances. The private Developers will be responsible for designing, constructing, and finances of the low-cost housing schemes
  • After the units` transfer to the Allottee, the maintenance of the units will be the responsibility of the private Developers
  • The Public Authority will provide private sector partners with the recovered costs by themselves, earned through selling the low-cost housing units
  • The Public Authority will develop the eligibility of the beneficiaries
  • The private sector will deliver the housing units to the Government or to an entity nominated by the Government
  • The allottees would have to pay the already planned amount for the expenditure of low-cost housing units
  • Loans at an affordable rate for a specific time duration will be granted to the allottees
  • For the trunk infrastructure, the model will be a public-private partnership provided by the Public Authority
  • The responsibility of the land, subsidy, and construction will be upon the public Authority

Bidding Standards: The bidding parameters would be the ammunity amount that is to be paid every year

Bidding will be fair under the following Model-3:

Risks Risk Allocation
Government Private Financial Beneficiary
Land
Design
Construction
Maintenance
Financing
Off-take
Trunk-Infrastructure
Credit Risk

Mode-4: DBFMT – Annuity-cum-Capital Grant Based Subsidized Housing

The DBFT annuity Model dictates that the private Developers will pay 40% to 50% of the cost in the duration of the construction phase. After completing the project, the rest of the amount will be submitted by the Developers as an annuity for up to ten years.

It is pertinent to mention that the annuity cost will be comparatively lower than the Model-3 as the Developers will be obtaining the capital grant. These grants will be provided to the Developers depending upon the performance and progress of the project.

Following are the salient features of the Model-4:

  • The Public Authority will offer the land on lease at affordable costs to the private Developers written in the agreement. Such measures will automatically make the project viable and affordable
  • The Public Authority will develop the technical guidelines for the low-cost housing project implementation
  • The private sector will take up the design and finances. The private Developers will be responsible for designing, constructing, and finances of the low-cost housing schemes
  • After the units` transfer to the Allottee, the maintenance of the units will be the responsibility of the private Developers
  • The Public Authority will provide private sector partners with the recovered costs by themselves earned through selling the low-cost housing units
  • The Public Authority will develop the eligibility of the beneficiaries
  • The private sector will deliver the housing units to the Government or to an entity nominated by the Government
  • The allottees would have to pay the already planned amount for the expenditure of low-cost housing units
  • Loans at an affordable rate for a specific time duration will be granted to the allottees
  • For the trunk infrastructure, the model will be a public-private partnership provided by the Public Authority
  • The responsibility of the land, subsidy, and construction will be upon the public Authority

Bidding Standards: The bidding parameters would be the ammunity amount that is to be paid every year

Bidding will be fair under the following Model-4:

Risks Risk Allocation
Government Private Financial Beneficiary
Land
Design
Construction
Maintenance
Financing
Cost Recovery
Off-take
Trunk-Infrastructure
Credit Risk

Model-5: Direct Relationship Ownership Housing

The main difference between this and Model-1 is that this model will possess a direct financial relationship between the private Developers and the Allottee. The Government Authority will allot the land at subsidized rates. But, the housing cost will be paid directly to the Developers by the allottees.

Following are the salient features of the Model-5 under Naya Pakistan Housing Scheme:

  • The Public Authority will offer the land on lease at affordable costs to the private Developers written in the agreement. Such measures will automatically make the project viable and affordable
  • The Public Authority will develop the technical guidelines for the low-cost housing project implementation
  • The private sector will take up the design and finances. The private Developers will be responsible for designing, constructing, and finances of the low-cost housing schemes
  • After the units` transfer to the Allottee, the maintenance of the units will be the responsibility of the private Developers
  • The private sector partners will recover the costs by themselves earned through selling the low-cost housing units from allottees
  • The Public Authority will develop the eligibility of the beneficiaries
  • The private sector will deliver the housing units to the Government or to an entity nominated by the Government
  • The allottees would have to pay the already planned amount for the expenditure of low-cost housing units
  • Loans at an affordable rate for a specific time duration will be granted to the allottees
  • For the trunk infrastructure, the model will be a public-private partnership provided by the Public Authority
  • The responsibility of the land, subsidy, and construction will be upon the public Authority

Bidding Standards: The private Developers could be selected depending upon the per-unit cost that will be in the form of monthly payment (EMI), which Developers will be permitted to obtain from the allottees.

Bidding will be fair under the following Model-5:

Risks Risk Allocation
Government Private Financial Beneficiary
Land
Design
Construction
Maintenance
Financing
Cost Recovery
Trunk-Infrastructure
Credit Risk

Model-6: Direct Relationship Rental Housing

The main difference between Model-5 and Model-6 is that in this model, the allottees would have to submit rental funds directly to the Developers, and the ownership will remain with the Developers.

In this manner, the Developers will undertake to recover the cost of affordable housing directly from the persons who have been allotted the houses. As per this model, the Developers will be responsible for the maintenance of the housing units for a pre-determined duration.

Following are the salient features of the Model-6:

  • The Public Authority will offer the land on lease at affordable costs to the private Developers written in the agreement at long-term lease. Such measures will automatically make the project viable and affordable
  • The Public Authority will develop the technical guidelines for the low-cost housing project implementation
  • The private sector will take up the design and finances. The private Developers will be responsible for designing, constructing, and finances of the low-cost housing schemes
  • After the units` transfer to the Allottee, the maintenance of the units will be the responsibility of the private Developers
  • The private sector partners will recover the costs by themselves earned through selling the low-cost housing units from allottees
  • The Public Authority will develop the eligibility of the beneficiaries
  • The private sector will deliver the housing units to the Government or to an entity nominated by the Government
  • The allottees would have to pay the already planned rental amount to the private Developers for a pre-determined duration
  • Loans at an affordable rate for a specific time duration will be granted to the allottees
  • For the trunk infrastructure, the model will be a public-private partnership provided by the Public Authority
  • The responsibility of the land, subsidy, and construction will be upon the public Authority

Bidding Standards: The private Developers could be selected depending upon the per-unit cost that will be in the form of monthly payment (EMI), which Developers will be permitted to obtain from the allottees.

Bidding will be fair under the following Model-6:

Risks Risk Allocation
Government Private Developers Financial Institution Beneficiary
Land
Design
Construction
Maintenance
Financing
Cost Recovery
Off-take
Trunk-Infrastructure
Credit Risk Not applicable

Comparative Analysis across PPP Models for Affordable Housing/Slums:

Comparison depending upon the scope of the work is as follow:

PPP Models naya pakistan housing scheme

Comparison depending upon the project structure:

naya pakistan housing scheme

Comparison depending upon the financing arrangements:

naya pakistan housing scheme 2021

Comparison depending upon the Beneficiary Criteria:

naya pakistan housing scheme 2021

Models Including Private Land with Partnership of the Government:

All the above-mentioned tables are capable of being implemented on the private-owned land rather than on the public-owned. In this regard, the land prices may rise gradually, keeping in view the market trends. In this regard, the Government would have to come forward to tackle the increase in prices.

Model-A: Taking Advantages of Credit Linked Subsidy Scheme

Private Developers will be providing land along with the duty of designing, constructing, and financing the housing units at pre-determined criteria. The cost of these units will also be set in advance to be delivered at a pre-determined deadline. The private Developers will be responsible for bearing the cost of the project and delivering the housing units.

The Banks are vested upon with the responsibility of developing the eligibility criteria of the beneficiaries while providing loans to the applicants. The finalization of the allottees will depend upon the eligible beneficiaries.

The public Authority, if required, may assemble beneficiaries, Banks, and Developers to expedite and facilitate the finalization of allottees. The Developers will deliver the housing units directly to the beneficiaries. It is pertinent to mention that the units` maintenance will be the responsibility of the allottees and not of the private Developers or the Government.

The relevant public Authority will ensure the provision of the trunk infrastructure without any delays or issues. The salient features are as follows:

  • The private Developers will offer the land. The Government Authority will be offering subsidies, policies, and regulations
  • The Public Authority will develop the technical guidelines for the low-cost housing project implementation
  • The private Developers will be responsible for designing, constructing, and finances of the low-cost housing schemes
  • After the units` transfer to the Allottee, the maintenance of the units will be the responsibility of the allottees and not of the Government or the private Developers
  • The private sector partners will recover the costs by themselves, earned through selling the low-cost housing units from allottees
  • The Banks providing loans to the applicants will develop the eligibility of the beneficiaries
  • The private sector will deliver the housing units to the allottees
  • Public Authority will ensure the delivery of the trunk infrastructure on the pre-set deadline
  • Needy and poor beneficiaries seeking loans from financial institutions will be given subsidies on interest at considerably low rates
  • The responsibility of the subsidies and trunk infrastructure will be the responsibility of the public Authority. Whereas the land provision and work over it for the construction of the housing units will be the responsibility of the private sector
  • The financial institutions will be responsible for taking the credit of financing the allottees

The table for Model-A is as follows:

Risks Risk Allocation
Government Private Developers Financial Institution Beneficiary
Land
Design
Construction
Maintenance
Financing
Cost Recovery
Off-take
Trunk-Infrastructure
Credit Risk

Model-B: Private Land-Based Models as per Affordable Housing in Partnership (AHP) Scheme

As per this model, the private Developers are vested with the responsibility of providing land, along with designing, funding, and constructing the units of low-cost housing units at pre-determined rates and standards. The Developers will also be liable to deliver the housing stocks on the given deadline.

It is the prerogative of the public Authority to develop the eligibility criteria of the beneficiaries. In this regard, the low-cost housing project could become a mix of houses for a diverse income classification. It is significant to mention that tax leverages would also be granted.

The salient features are as follows:

  • The private Developers will offer the land. The Government Authority will be offering subsidies, policies, and regulations.
  • The Public Authority will develop the technical guidelines for the low-cost housing project implementation
  • The private Developers will be responsible for designing, constructing, and finances of the low-cost housing schemes
  • After the units` transfer to the Allottee, the maintenance of the units will be the responsibility of the allottees and not of the Government or the private Developers
  • The private sector partners will recover the costs by themselves earned through selling the low-cost housing units from allottees
  • The Banks providing loans to the applicants will develop the eligibility of the beneficiaries
  • The private sector will deliver the housing units to the allottees
  • Needy and poor beneficiaries seeking loans from financial institutions will be given subsidies on interest at considerably low rates
  • The responsibility of the subsidies and trunk infrastructure will be the responsibility of the public sector. Whereas the land provision and work over it for the construction of the housing units will be the responsibility of the private sector
  • The project may be fixed through a transporter handover, either on a project basis or on a city basis.

The table for Model-B is as follows:

Risks Risk Allocation
Government Private Developers Financial Institution Beneficiary
Land
Design
Construction
Maintenance
Financing
Cost Recovery
Off-take
Trunk-Infrastructure
Credit Risk

Ehsaas Program:

The umbrella initiative, known as Ehsaas, is a social safety program envisioned by PM Imran Khan in 2018 and launched formally in March 2019 with an objective to reduce inequality, invest in people, and uplift the living standards of the needy people.

Ehsaas is all about the development of a “welfare state” on the road map of “Riasat e Madina”. The objective is to utilize the resources and tools of the 21st century for effective and efficient mechanisms.

The Government has planned to use all of the official machinery to implement this poor-centric program without any issues or delays. For this, the officials have carved out multi-sectoral collaborations among several departments bringing centers and provinces on the same page.

The private sector has also been taken on board, playing a crucial role in uplifting the overall social conditions of the country. These measures will generate an endless chain of jobs, livelihood in the needed areas. Transparency in the systems is also a priority.

The program targets extremely poor people, orphans, widows, the homeless, the disabled, medically at risk, jobless, low-income families, laborers, and undernourished persons. The Program also uplifts the areas where poverty rates are higher than in other areas.

Ehsaas Policies:

Following are the Ehsaas Policies:

  • Ehsaas strategy
  • Ehsaas Langar Policy
  • Ehsaas Labour Policy
  • Ehsaas Policy Statement
  • Ehsaas Innovation Policy
  • Ehsaas Nutrition Strategy
  • Ehsaas Orphanages Policy
  • Policy on Ehsaas One Window
  • Ehsaas Data & Metrics Policy
  • Ehsaas Financial Inclusion Policy
  • Ehsaas Governance & Integrity Policy
  • Ehsaas 50%+ women related benefits
  • Ehsaas Undergraduate Scholarship Policy
  • Ehsaas Private Sector Engagement Policy

Ehsaas Programs:

Following are the programs of Ehsaas:

  • PM COVID-19 Fund Portal
  • School for Marginalized
  • Ehsaas Rashan Program
  • Ehsaas Kafalat Program
  • Ehsaas emergency cash
  • Ehsaas Nashouma
  • Education CCT
  • Womens` Center
  • Ehsaas Thela
  • Ehsaas Langar
  • Ehsaas TV
  • Tahafuz
  • Pledges to Ehsaas
  • Ehsaas Food Court
  • Tracking Portal App
  • Ehsaas Online Education
  • One-Window Ehsaas App
  • Ehsaas Garbage Rickshaw
  • Ehsaas Clean Cooking Stoves
  • Orphanages Policy & Reform
  • Graduation & Interest-free Loans
  • Ehsaas Amdam (Income) Program
  • Ehsaas Artisans to Fashion House
  • Undergraduate Student Scholarship
  • Ehsaas Platforms for Daily Wage Workers
  • Ehsaas National Socio-Economic Registry
  • IT Hubs and Incubators in 450 BISP Offices
  • Ehsaas Micro-Credit for Daily Wage Workers
  • Data for Pakistan (District Development Portal
  • Governance Reforms in Safety-net institutions
  • Policy to support the extremely marginalized groups
  • Commercialization Policy for Specialized Nutrition Food
  • Support to the marginalized (Tahafuz Window Integration)
  • Solution Challenge Policy to build value chains (Rural Transformation Policy fo the poverty)

Ehsaas Governance:

  • Ehsaas Steering Committee: A steering committee under the chairmanship of the Prime Minister to develop guidelines for the program development
  • Ehsaas Governance & Integrity Policy: The Ehsaas governance and integrity policy approved by the Cabinet
  • Ehsaas M&E Framework: This framework will be able to establish an effective approach for the tracking, evaluation, and analysis of outcomes

Ehsaas Technical & Stakeholder Committees:

Following are the Ehsaas Committees and their status:

  • Metrics Committee will keep in check the metrics and the independent means of verification
  • Poverty Alleviation Coordination Council is vested with a variety of mandates from coordination of fragmented social safety net arrangement and planning to speed up research & policy support to several entities
  • Ehsaas Rural Value Chain for Entrepreneurship Initiative is considered as a multi-sectoral Ehsaas Value Chain Building Committee to develop a value chain building policy to tackle issues in rural areas such as farming, exploitation by extractive Aarthis, and stress selling
  • Ehsaas Labour Expert Group is given the responsibility to develop a recommendation to bring the informal workers into the social safety net
  • Pakistan National Nutrition Coordination Council is an inter-ministerial Council Chaired by the PM with eight cabinet ministers sitting on the task force
  • Ehsaas Partners’ Forum was developed as a forum to bring all the stakeholders on one forum, including stakeholders from the private sector and civil society. The purpose was to provide integrated, coherent, and aligned technical support to implement the Ehsaas strategy
  • Ehsaas Orphanages Committee is a committee to improve the living standards of orphans in child care centers of the country. The committee meets several times per year to check on their progress and direction

Ehsaas Partnership:

Following are the partners in Ehsaas Programs under Naya Pakistan Housing Scheme:

  • Langar is one of the essential parts of the Ehsaas Program. While partnering with the Saylani Trust, it will launch 112 Langars all over the country in two years on the PPP model to serve meals to the poorest and lowest-income persons.
  • Facebook is offering support to the Ehsaas Program through several collaborations. A design hackathon to design a campaign for malnutrition centered on stunting has been rolled out
  • Development Partners Committee will be providing the institutional, financial, and technical assistance with the first meeting already held to jump-start the relief to the needy people
  • Pak-US Business Council is vested with an aim to explore areas of cooperation and investment under Ehsaas in relevant areas involving the social sector. The State Department and Ehsaas have revived a memorandum of understanding to develop collaboration to promote entrepreneurship among women through the private sector
  • Punjab Ehsaas Program has been presented to the Punjab Cabinet
  • Sindh Ehsaas Program has been presented to the Punjab Cabinet
  • KPK Ehsaas Program has been presented to the Punjab Cabinet
  • Balochistan Ehsaas Program has been presented to the Punjab Cabinet
  • Azad Jammu & Kashmir Ehsaas Program briefing has been planned
  • Gilgit Baltistan Ehsaas Program briefing has been planned

Ehsaas Strategy:

Ehsaas’ poverty reduction strategy is based upon four pillars. It is currently embodying 134 policy actions that could be expanded as the process of consultations on the program is under process. The Four Pillars are as follows:

  1. Address elite capture and make the Government mechanisms work to create and maintain equality
  2. Safety nets for the disadvantaged segment of the society
  3. Creation of jobs and livelihoods
  4. Human capital development

1. Address Elite Capture and Make the Government Mechanisms Work to Create and Maintain Equality:

This pillar includes the following policies:

  • A newly developed constitutional amendment to move article 38 (d) from the “Principle of Policy” section into the “Fundamental Rights” section. This amendment will ensure the delivery of food, clothing, housing, education, and medical relief for poor and needy citizens
  • Added funds and expenditure on social protection. Addition of Rs. 120 billion for social protection will bring a much-needed boost to the project. At this stage of increase in budget, the total spending will be 1% of the total GDP
  • Creation of Ministry of Social Protection and Poverty Alleviation Coordination to tackle the existent social issues. This Ministry will encompass Benazir Income Support Program (BISP) Zakat, Pakistan Bait ul Maal, Poverty Alleviation Fund, Trust for Voluntary Organizations, the SUN Network, Center for Social Entrepreneurship and Secretariats of Poverty Alleviation Coordination Council, and Planned Labour Expert Group
  • Creation of one-window social protection operations to support the beneficiaries of this program
  • Poor-centric objectives and goals will be an indicator for this Ministry
  • A need-based mechanism in the New National Finance Commission Award framework will also be part of the program
  • A policy to enhance the poor-centric impacts of the Public Sector Development Program (PSDP) resources will be developed. For every project, the required efforts will be made to increase the private funds so that PSDP resources are spent on the priority projects that will be serving as an equalizer. The policy will set the priority of the projects at the planning commission.
  • A Committee on Innovative Financing and Deployment of Innovative Financing Mechanisms to generate more resources and create finances for poor-centric investments.
  • Guidelines on Corporate Social Responsibility in the areas related to Voluntary expenditure, its alignment, tax rebates, and reporting
  • A new mandatory section in the PC-1 Performa, which is a Planning Commission Approval Document to screen every PC-1 for its effects on poverty and equality
  • A committee to evaluate the hurdles in the Justice System for the vulnerable part of the society
  • A new policy will be developed for the better and effective use of development funds by the Parliamentarians. This policy will ensure transparency and betterment of living standards with the overall uplift of the economy.
  • A comprehensive set of guidelines will be developed on Conflict-of-Interest for State and Government functionaries. For more information, please visit Naya Pakistan.

2. Safety Nets for the Disadvantaged Segment of the Society:

Almost 35% of citizens are suffering from the menace of poverty directly or indirectly, and almost 24% are facing a shortage of finances to fulfill their basic needs on a daily basis. It is pertinent to precisely identify these underprivileged groups of society and arrange help accordingly and effectively.

The Government is taking several steps in the planning of Naya Pakistan Housing Scheme such as follows:

  • The development of a new National Socio-economic Registry
  • Transformation of National Socio-economic Registry into a live Registry
  • Social Protection Programs such as Kafalat and Tahafuz have been introduced under BISP
  • Other initiatives include assistance to the poor widows, legal aid, partnership with NGOs, houses for orphans, Panah-gahs, housing schemes for the poor, medical assistance in case of critical illnesses, Insaf insurance cards, and welfare initiatives for the disabled
  • Other initiatives include the welfare of the poor older people, including biometric payments of pensions, increased labor pensions, and houses for older people
  • The steps are also taken for ensuring the Overseas Pakistanis through Community Welfare Attaches. There will also be an addition of the protector of Emigration Offices with an addition of pre-departure briefings for migrants

3. Creation of jobs and Livelihoods:

The creation of jobs is a promise by the present Government, and 1 million jobs are the vision of Imran Khan in five years. Ehsaas encompass the steps to create jobs. The newly established policy of Solutions Innovation Challenge, Prize Funding, and Venture Capital Funding to develop value chains and solutions for poverty eradication. These steps will offer:

  • Reformation in the traditional Thela for effective and efficient income generation for the low-income segment of the society
  • Development of the Micro Credit facility for Daily wages people to earn monthly groceries
  • Identification of the online platforms to help daily wagers that specially focus on women
  • Development of the new models of incubators
  • Development of modern rickshaw garbage collectors while creating livelihoods for the improvement of street-to-street sanitation conditions.

4. Human Capital Development:

Human Capital Development is a significant step towards the enhancement of living standards. This may include addressing malnutrition, academic issues solutions, protection of children from any harm, development of skills and jobs, health insurance coverage, and empowerment of women’s rights. Several initiatives are taken up; such as follows:

  • Malnutrition is one of the top priorities under this program, with provisions of de-worming drugs, iron, folic acid, micro-nutrient supplements from government hospitals
  • Awareness of women’s issues
  • Multi-Sectoral Nutrition Coordination Body that the PM himself will oversee
  • 5+1 models od desi chicken asset transfer
  • Asset transfer of goats
  • A kitchen Gardening Initiative
  • Distribution and promotion of seed packages from utility stores
  • Fortified food for malnourished children with stunted growth
  • Further initiatives may include poor-centric education and an awareness drive on free education in the light of Article 25-A of the constitution
  • Increase in the National Education Foundation Budget for the spread and betterment of education among poor masses.

Conclusion:

Naya Pakistan Housing Scheme is a prime project of Tehreek-e-Insaf envisioned by Prime Minister Imran Khan in 2018 and officially launched in 2019. The program has put the country on the path of becoming a welfare State while uplifting the living conditions of the vulnerable segment of society.

 

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