Zameen Interviews – Mr. Mehmood Ur Rasheed Discusses the Progress & Impact of Naya Pakistan Housing Scheme

On April 17^th, the current prime minister of Pakistan, Imran Khan launched the much-awaited “Naya Pakistan Housing Programme” (NPHP) and promised to deliver 5 million low-cost housing units within the next five years. Familiarly known as the Prime Minister Housing Scheme or Imran Khan Housing Scheme, the initiative is more than just a project; it is a hope for millions of Pakistanis to have a home of their own. It can be rightly said, then, that the Naya Pakistan Housing Scheme is a foundation stone in the transformation of Pakistan. Zameen.com recently interviewed Mr. Mehmood Ur Rasheed as part of the recently launched web series, Zameen Interviews, and inquired about the progress of the housing project.

The interview was the third in the series, following the first and second episode with Mr. Iftikhar Durrani and Mr. Zaighum Rizvi respectively. 

About Mr. Mehmood-Ur-Rasheed 

Mr. Mehmood Ur Rasheed is currently serving as the Minister for Housing, Urban Development, and Public Health Engineering of Punjab. Formerly, he served as the Mayor of Lahore twice and as a member of the Punjab Assembly thrice in a row. Moreover, he is also highly esteemed for being a seasoned and knowledgeable politician. 

Highlights of the Third Episode of Zameen Interviews with Mr. Mehmood-Ur-Rasheed  

Here’s what Mr. Mehmood had to say about Naya Pakistan Housing Programme (NPHP) during the third episode of Zameen Interviews – an influential series of one-on-one discussions with well-known public figures, diplomats, and politicians. 

Mr. Rasheed commenced the conversation by reflecting over the past campaigns of the same nature and their overall progress. Following the same agenda, he then stated the importance of NPHP by saying, “This is the first time in the history of Pakistan, that any PM has given the required importance to this most crucial national issue”. 

Question: How is the NPHS different from the housing schemes launched by the previous governments?

Mr. Mehmood began with stating that NPHS is a priority for the current régime, and reinforced his statement by adding, “Ever since Imran Khan became prime minister, he has chaired more than a dozen meetings himself where he has made central and provincial task-forces”. Explaining the aim of these task forces, he further added, “Punjab housing task-force encompasses housing experts, the private sector’s developers, architects and engineers who are skilled in this field”. 

In continuation of his statement about the importance of NPHS, he said, “First time in the history of Pakistan, a PM has tried to address this national issue and promised to deliver 50 lakh affordable houses”. 

Question: Do you agree that the target of constructing 5 million houses is unrealistic? 

In compliance with PM Khan’s dedication and love for the nation, Mr. Mehmood told the interviewer that for the PM, even the sky is not the limit, as he always sets tough and high targets. 

He further supported his argument by saying, “This target is difficult but not impossible. Like I said if the private sector takes part with us in this project and the way PM and the government is taking an interest – we all are working and only if we continue this hard work – The first year is difficult when it is in the planning phase. Needless to say, when it will be in the execution phase and as soon as the field-work beings; then the people, the private sector will be encouraged and people will regain their trust that houses are being constructed”. 

Question: What are the reasons behind the delay seen in this project? 

Mr. Rasheed said that claims without action wouldn’t create any difference and he further revealed the progress of NPHP by saying, “Right now we have practically started this project in three districts”. He made Zameen.com listings an evident to the project and asked the people to visit Renala Khurd, Okara to verify the progress of readily constructed houses there. 

Mr. Rasheed told the interviewer, “It is not an easy task. We have to work within the rules and regulations of the existing law – this work could have started four months back but we have PPRA Rules*, pre-qualification and tendering process”. He explained the significance of the laws and said that the project is obliged to go under all the legal procedures to avoid any false claim or litigation issues later on.

*PPRA Rules: Punjab Procurement Regulatory Authority (PPRA) is a corporate body established in 2002, to regulate all procurement of goods, services and work in the public sector.

Question: What has the Ministry of Housing achieved so far in this regard? 

“The first thing we did on governmental level or countrywide and particularly focusing on Punjab, we created a land bank”. 

Explaining the purpose of that land bank he said that the land bank was a reservation of around 2 lakh kanal land in several urban zones of Punjab – currently, the reserved land is being scrutinised for the feasibility of this housing project. Mr. Medmood added, “Its layout plan and the rest of the study is quickly progressing. In the first phase, the three cities of Punjab including Okara, Lodharan, Chishtian, and Bahawalnagar district are the ones where 1000 units are set to begin.” 

Mr. Mehmood continued, “There has been a lot of work done on its financial model. The Foreclosure Laws* which were previously suspended by the High Court and the Supreme Court are being restored. And, to facilitate the common citizens by providing them loans with the help of HBFC, Bank of Punjab and Al Meezan Bank – these three banks are ready to facilitate the people and a long term loan of 15-20 years will be provided to them”. 

The conversation was then shifted to the progress of the infrastructure, replying to which he said, “Infrastructure and development have been completed, and it will be a gated community with complete boundary walls”.  

*Foreclosure Law: A legal process in which the banks take back possession of any unpaid property, upon default of borrower’s mortgage payment.

Question: Which areas are you catering to in Phase II of the Naya Pakistan Housing Scheme?

“We will announce it in 10 districts, a few of them include Lahore, Faisalabad, Chiniot, Sialkot, Jehlum, Sargodha, Layyah, Bhakkar and Quaid-a-Abad – the land has been identified in these cities and the work progress is prompt. By the end of 2019, 1.5 lakh housing units will be set to be constructed”, Mr. Rasheed answered confidently. 

Question: Can you elaborate on the financial model of the project? 

Mr. Mehmood explained the financial model by responding, “We would allot the plots to an individual, then the House Building Finance Corporate and banks would pledge in there and would hand-over lump sum amount of two or three instalments to them. The amount would go to the contractor and the houses will be constructed. Then within easy instalments which would last up to 15 years, the owner would pay back the loan to the bank or HBFC”. 

He continued on Zameen Interviews, “This was and will be our financial model but it is surprising to find that less than 5% applicants want to apply for the housing loan. But the model we are trying to make, is the kind which wouldn’t be a burden on the government. Our land banks would be used as collateral and when we announce this scheme, people who will come in these schemes should give a certain payment and the rest of it should be paid in the form of instalments. So, that the housing scheme gets completed”.

Question: How would this project rehabilitate people living in the slums? 

Mr. Rasheed answered the interviewer by stating that they have formed a subcommittee dedicated to this task. He further explained the main functions of the committee by saying, “The committee is engaging with different people living in the slums to either provide an alternate place or may build and shift them a tower on the same place. While the rest of the land is a topic of interest for the developers”. 

Supporting his statement, he gave an example of a leading developer in India, Mr. Gupta, who visited the site recently and has shown an interest in that piece of land. Mr. Gupta is well-known for working for slum rehabilitation and he has communicated his experience with the officials. Mr. Rasheed assured that we are working on the said subject. 

Question: How are you catering to the villages through this project? 

“Like I said, about the private sectors – we are planning to build three main smart cities in Punjab including one near Lilal, Sohawa and Nankana. Their studies are being carried out, Nespak has given the task to our urban unit; which is making a feasibility report and are doing a detailed study on it”, Mr. Mehmood prompted. 

He continued, “One it’s finalised, then we will begin the construction – one by one”. Mr. Rasheed reflected upon the rural culture by saying that, “Urban hubs are extremely pressurised by migration that city like Lahore which had an approximate population of 40-50 lakh (10-15 years ago) is now crossing 1.5 crore”. 

He then progressed towards the planning for village housing units and stated that the team is executing to adjust homeless villagers in their hometowns. The Housing Minister further explained, “We have decided to make 50 homes in each village of Punjab which will cost around 4-5 lakh per unit and these houses will be designated to the homeless people over there, who do not have a roof”. 

Question: How is the provision of decent housing being ensured through this model? 

“We need to change this concept; people need shelter and all the necessities like clean water, proper sewerage and drainage as well as electricity. The 50 houses we are going to build, will have solar grid system”. 

Urban Development Minister sketched the picture of those houses in his words by saying, “Each 5 marla house in rural areas will comprise of two bedrooms, one kitchen and a bath, just like any other typical house near countryside. The kind of houses they are living in right now, they would feel ten times better than the houses they were previously living in”. He further explained the infrastructure of the housing project and said, “We will make a small market, school and a cattle yard for their livestock – so, they can keep their animals over there safely and go back to their homes, and then in the morning take back their animals to the field or wherever they desire.” 

To put it simply, the NPHS will also be working in favour of the less privileged, specifically people residing in villages. The scheme will provide affordable houses to villagers who have either migrated or are planning to migrate to cities for a standard lifestyle. The houses will boast basic utilities and the urban areas will not be crowded anymore.   

Question: How are you incentivizing the private sector?

“Private sector, which has to wait long for the approval of housing schemes – like, from LDA and the rest of the development authorities – after changing their by-laws, one window operation will be conducted in which, any private developer will get the approval of his scheme/sub-division within 60 days. And, they are committing with us to give 20% of their plotted land to build 3-5 marla affordable houses – the prices of those houses will be decided mutually”, answered Mr. Mehmood. 

He added, “We are offering them the cross-subsidy, let’s say, if the developers take 2 years to get their land approved and announce their scheme – if they plan their layout within the 60 days of approval, announce the scheme and would contribute 20% houses to the NPHS – they will be entitled to enjoy these benefits.” 

Mr. Mehmood clearly stated that subsidy will be provided on a single term only and the developers will be bound. Hence, they will be contributing 20% houses and will be heralding these houses in line with Imran Khan Housing Scheme – the houses will be sold quickly and the developers will be able to earn a significant hike in their profits. 

Question: Why is it hard to maintain a single channel of communication? 

Denying the statement he said, “There’s nothing like this in Punjab. Everything is consolidated. ” He advised the audience to visit PHATA’s website and added, “The task-force has been built there. We have a good working relation and understanding – we sit and decided everything mutually. The contrary to the beginning when everything was not finalised, but now everyone is on board and there is no ambiguity, confusion or division between us”.

Question: What are the hurdles that this model is currently facing? 

The Housing Minister identified some of financial hurdles, after which he shifted his focus to another main issue, “The second issue is of the banks, in this sector, the investment is almost non-existent, probably 0.2%. Whereas in the other countries, the bank keeps 5-7% for the affordable housing projects – this is an important issue which the government has taken up”. 

Question: Do you plan to incorporate technology into this project’s execution?  

Mr. Mehmood answered by saying that we are still following typical modes of construction and mainly depending upon brick, cement, and structural iron. He continued, “If the construction starts on such a big scale, then there could be a possible shortage of brick – and here in monsoon, our brick kilns are shut down. Hence, we want to incorporate the latest innovations and techniques in it which would speed up the work”.  

He supported his statement by giving an example, “The house which would be built in six months or year by constructor through bricks, cement and rocks – a modern industry can speed up this process by taking over – industries that build model houses here. Those houses consist of model slabs which also make them energy-efficient.”

He further added, “The only issue with it is its cost, if the cost comes under our range, it will be very easy for us to achieve the target of 25 lakh homes”. 

Question: How would you encourage the opposition to be a part of this initiative? 

Mr. Mehmood answered by saying that any constructive feedback from the opposition will be welcomed. His words being, “I believe the opposition is part of our country and they are parliamentarians. In the democracy, today’s opposition will be tomorrow’s ruler and today’s ruler will be sitting in the opposition. We have been in the opposition for the past 15-20 years and now we are in power, they are sitting in the opposition. So, it is only part of the game”. 

He added, “If they come to us, give us good suggestions and want a constructive role, they will be welcomed.” 

Question: What potential do you see in the idea of engaging the youth in this housing model? 

“Currently, there is unemployment in the country and the PM has promised the country to provide 1 million jobs and livelihood. This is also important for us that fresh graduates, engineers, architects and others would not be looking for government jobs only.” He continued, “In the overall economy, the construction activity which is paused, small companies will be built based upon the allotment of previously discussed rural planning project.”

Mr. Rasheed said that those small companies will receive the tenders of those small projects and hence 2-3 people will get together and make their own company. He said, “So, this is our idea and I believe thousands of people will get livelihood from this.” 

Question: Do you agree that if the scheme had taken its start from the big cities, the turnover would have been better? 

Expressing his views, Mr. Mehmood-Ur-Rasheed stated that, “To start in big cities like in Lahore, you need the availability of trunk services and land, its approvals and rest of the things and consultancy. All these things are in the pipeline, and after a month we will reach in this position to announce the projects in big cities.” 

He further added that we are all set for big cities such as Lahore, Faisalabad and Sialkot but the work commenced in the cities where the land was readily available.

Question: How are you ensuring transparency in this initiative? 

Sharing some useful insights of the Naya Pakistan Housing Project with Zameen’s interviewer, Mr. Mehmood questioned, “Why are we late?” and he immediately responded to his own question by saying, “Because we want to do it most transparently and it is hoped, nobody can point a finger”.

“Our government may have not done any major work but there is one thing, no mega corruption case has been seen – you cannot point a finger on any minister in the province or in the centre. Things are moving transparently. And in the future, it will go on like this”. 

Question: How would you ensure that this project does not suffer even with a change of government following the next elections? 

Mr. Mehmood-Ur-Rasheed ensured by saying, “The thing we will do, will be so powerful that no government would dare to shut this programme or leave it incomplete.”

He said that the Imran Khan Housing Scheme is a result-oriented programme and it will be completed within the five-year tenure. He also stated that (if it remains incomplete) the next government will be bound to complete the remaining tasks. 

Question: What message would you give to the public? 

Concluding the interview, Mr. Mehmood told the Zameen Interviews team that the government is putting all required efforts in the project and the hard work which is being done in this sector by the government is not being done in any other sector.

To quote Mr. Rasheed in his own words, “The visibility may not be as it was expected but it would be pretty visible in the next 2-3 months. I believe there is no hopelessness and we are pretty hopeful. The tough time has passed – land identification and other things.” 

He addressed Zameen.com and the viewers and said, “This is a national issue and if it has been taken seriously by a Prime Minister and the government, you should also come forward and excel in it by contributing”. 

The former mayor Lahore showed immense faith in God and continued, “By Allah’s will, we are fully trying not to disappoint the people and make the PM’s dream come true”. 

After the third interview, the fourth episode saw Mr. Imran Ali Khan, the CEO of EMPG and co-founder of Zameen.com taking time out and sitting with the team. New episodes of Zameen Interviews can be tracked by following our Facebook page and subscribing to our YouTube channel. For more updates on Naya Pakistan Housing Scheme, subscribe to Zameen Blogs – Pakistan #1 property portal.