Egyptian billionaire offers to build 100,000 housing units in Pakistan

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The $2 billion Eighteen project launched in 2017 will be ready by year 2021. (Photo illustration by Eighteen)
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Pakistan’s housing sector offers great opportunities for investment due to rising demand. (AN photo)
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A view of under construction housing project in port city of Karachi. The demand for new housing unit is increasing with the growing population. (AN photo)
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Tarek Hamdy, CEO of Elite Estates, says the Egyptian billionaire Naguib Sawiris is ready to build affordable housing units in Pakistan. (AN photo)
Updated 18 January 2019
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Egyptian billionaire offers to build 100,000 housing units in Pakistan

  • Plan to construct 5mn housing units requires Rs17tr, State Bank says
  • Group is already investing in a housing project in Islamabad

KARACHI: Egyptian billionaire Naguib Sawiris has offered to build 100,000 housing units in Pakistan to help realize Prime Minister Imran Khan’s dream of an ‘ambitious’ housing project, officials said on Friday.
“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,” Tarek Hamdy, Chief Executive officer of Elite Estates — a partnership between Ora Developer and Saif Holding — told Arab News in an exclusive interview. 
Owned by Sawiris, Ora Developers is already engaged in the construction of a multibillion-dollar housing scheme named ‘Eighteen’ which was launched in 2017 in Islamabad with local partners, Saif Group and Kohistan Builders.
Sawiris’ first investment in Pakistan was in Mobilink, a cellular operator.
PM Khan in October 2018 had launched ‘Naya’ (New) Pakistan Housing Project in line with his party’s election manifesto, which promised fivr million houses for the poor.
Hamdy says they have “set rules or guidelines of the way of doing things” that apply to every real estate projects — whether they are affordable or high value units.
“We will use our experience and knowhow to deliver this properly to the people of Pakistan,” he added.
Since the announcement of the low-cost housing project for the poor, the scheme has been at the heart of all political and economic discourses with several calling it too ambitious.
“This scheme is very ambitious yet very promising for the people of Pakistan. I think all the developers should help in this scheme. You cannot solely rely on the government to build five million houses,” Hamdy said. 
Recently, the governor of Pakistan’s central bank had said that the massive housing project would require financing of upto Rs 17 trillion.
Hamdy believes that the promise of building five million affordable housing units cannot be realized in 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 that is not the project (to be achieved) in one or two years... may take few good years, may be couple of decades to be achieved,” he said.
In the Islamabad project the Ora Developers own a 60 percent stake in the project comprising 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 networth of the project is $2 billion.
The next cities on the radar for real estate projects are Lahore, Karachi, and Faisalabad. “We intend to do more, we intend to invest more. I think that our portfolio of real estate could come to $10 billion worth of investments in the next five to 10 years including all the projects that we intent to do,” Hamdy said.
Pakistan’s housing sector is marred by frauds, scams and unfinished schemes which has been discouraging many potential investors from venturing into the sector. However, Hamdy says he is confident of delivering the promise by 2021.
Analysts say that Pakistan’s housing sector offers great opportunities for investment due to increasing demand. “According to estimates, the current real estate market value is around Rs900 billion which is three times that of the GDP,” Saad Hashmey, an analyst at Topline Securities, told Arab News, adding that the PM’s housing project is the need of the hour.
Pakistan faces a shortage of nearly 12 million housing units that may require a massive investment of around $180 billion, according to the former Chairman of the Association of Builders and Developers, Arif Yousuf Jeewa.
Pakistan expects to attract more than $40 billion foreign direct investment in the next five years in oil refining, petrochemical, mining, renewable energy, and real estate sectors. “We estimate that roughly around $40 billion investment will be made by three countries (Saudi Arabia, the UAE, and China) during the next three to five years,” Pakistan Board of Investment BoI chief, Haroon Sharif had told Arab News earlier, adding that “the investment would start materializing within the next two years”.


Khyber Pakhtunkhwa government promises action against polio vaccination spoilers

Updated 17 min 43 sec ago
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Khyber Pakhtunkhwa government promises action against polio vaccination spoilers

  • Traders in Bannu, one of province’s worst-hit districts, had earlier refused to administer drops to protest new taxes, call off boycott
  • Provincial Information Minister says government will ensure polio teams reach every child no matter the obstacles

PESHAWAR: The government of Pakistan’s northwestern Khyber Pakhtunkhwa province warned on Tuesday it would take strict action against anyone misusing the anti-polio drive just days after traders in Bannu, a district worst hit by the virus, refused to allow the administering of polio drops to protest new taxes.
Pakistan’s polio eradication campaign has hit serious snags in recent months, with an alarming spike in reported cases that has raised doubts over the quality of vaccination reporting and prompted officials to review their approach to stopping the crippling disease.
The country is one of only three in the world where polio is endemic, along with neighboring Afghanistan and Nigeria, but vaccination campaigns have cut the disease sharply, with only a dozen cases last year compared with 306 in 2014 and more than 350,000 in 1988, according to Pakistani health officials.
However, there has been a worrying jump this year, with 53 new cases recorded, 32 of them in Khyber Pakhtunkhwa.
“Senseless people who are misusing the anti-polio drive for their personal interests, the government will take action against them and we will not spare them,” Provincial Information Minister Shaukat Yousafzai told Arab News. “Polio is no less a threat than terrorism. We will make our province and our country polio-free the way we won the war against terrorism.”
“Despite being a nuclear power, do you want Pakistan to stand with Nigeria and Afghanistan [as countries where polio persists]?” Yousafzai asked. “Never ever. We will ensure polio teams reach every child.”
A new round of vaccinations is scheduled to be launched from August 26 to September 1 in 24 districts of Khyber Pakhtunkhwa, including Bannu, said Kamran Afridi, the coordinator of the Emergency Operation Center for polio eradication. Around 30 polio cases out of 32 reported in Khyber Pakhtunkhwa this year have emerged in Bannu.
Afridi said following the recent announcement of protests by traders in Bannu traders, all District Coordination Officers had been directed to engage the community and launch awareness campaigns. 
On August 18, traders in Bannu, a district to the volatile North Waziristan tribal district, threatened to boycott anti-polio drives to build pressure on the government to reverse “heavy taxes’” levied on small businesses. Although the boycott has since been called off, it highlights the complexity of Pakistan’s anti-polio campaign. 
“We have called off our polio boycott but we had to announce the boycott just to get the government’s attention to reverse unprecedented increase in taxes,” Shah Wazir, president of the Bannu Chamber of Commerce, said.