Association of Builders and Developers of Pakistan welcomes the monetary policy of State Bank of Pakistan
Karachi, May 27, 2015 (PPI-OT): Junaid Ashraf Taloo Chairman Association of Builders and Developers of Pakistan, Vice Chairman Muhammad Hanif Memon and Regional Chairman Muhammad Hassan Bakshi welcomed the monetary policy of State Bank of Pakistan for reducing the rate of interest by 1% and fixing the same at 7%. This is the lowest level of interest rate in 42 years. Welcoming the policy, he further said that due to the lowering of interest rate, the cost of construction materials will also come down and the consumers will get relief.
Accordingly he hoped that due to reduced rate of interest by 1%, the manufacturers of construction material such as cement producers will reduce the rates visibly. Chairman ABAD Junaid Ashraf Taloo further said that in last four months, the policy discount rate has minimized from 10% to the lowest level of 7%, resultantly the cost of doing business has reduced and loans have become attractive which will not only increase investment but conducive law and order situation will further enhance the confidence of local and international investors.
The Vice Chairman of ABAD Muhammad Hanif Memon said that continuous reduction in the rate of interest will put the construction industry on the path of progress. He appealed Finance Minister of Pakistan Ishaque Dar to make the mortgage financing more attractive to the middle class and in this regard take steps on war footing.
The first mortgage refinancing company should be activated and banks must be directed to allocate a minimum of 5% of their total loan amount for construction of housing. He said that visible reduction in the rate of interest will make easy to carry forward the Vision 2025 for low cost housing of Prime Minister of Pakistan.
The members of ABAD are ready to play their role in this regard. Muhammad Hassan Bakshi Regional Chairman said that according to Annual Report 2013-2014 of State Bank of Pakistan decrease in coal prices from 13% to 15% in international market and continuous decrease in the rate of interest of loan has resulted in decrease in the cost of big cement manufacturers by 29% and small companies financing cost by 50% recorded as against July to March 2014, whereas the central bank has further reduced the rate of interest by 1% which will again reduce the financing cost of cement.
In this perspective cement factories should provide relief to consumers by minimizing the price. Reduced price of building materials including cement will enhance construction activities and will also provide vast jobs opportunities.
For more information, contact:
S. Javed Jafri
Secretary General – ABAD
Association of Builders and Developers of Pakistan
ABAD House, ST-1/D, Block-16, Gulistan-e-Jauhar
Karachi – 75290
UAN: 111-11-ABAD (2223)
Tel: +92-21-34613645-47, +92-21-34613649
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