Muhammad Asad Tahir Bhawana

Chinese investment can help develop the housing and construction sector in Pakistan, thus ushering in an era of economic prosperity, reports WealthPK. Recently, Chang Chun, CEO of China State Construction Engineering Corporation Ltd. (CSCEC), met with Iftikhar Ali Shallwani, Federal Secretary for Housing and Works.

A detailed discussion took place on construction of low-cost housing and upgradation of slums for Pakistani citizens with low incomes. In this regard, the CSCEC and the Ministry of Housing and Works signed a memorandum of understanding in September 2021. A year's validity was granted to the memorandum. Chang Chun requested the renewal of the MoU and inclusion of the housing and construction sector in CPEC.

In order to undertake mega projects in the construction and housing sector, the Government of Pakistan is seeking Chinese investment, which will also create extensive employment opportunities for Pakistan and ultimately contribute to its economic development, Iftikhar Ali Shallwani said.

The secretary of housing expressed his full support for further strengthening cooperation with China in housing and urban-rural development. He said Pakistan was ready to work on new MoUs for upgradation of its housing sector. He further said Pakistan will consider Chang Chun’s request to make housing and works a part of CPEC.

China is already the largest contributor to foreign direct investment in Pakistan with around $240 million in July-February FY 2023 as per the SBP data. In Pakistan’s construction sector, the inflow of FDI from China amounted to $25.3 million during July-February FY2023.

It is expected that the MoUsa signed during this meeting will bring a huge foreign direct investment in Pakistan’s housing and construction sector. Owing to the economic challenges faced by Pakistan, the housing and construction sector declined in the previous fiscal year. However, the new investment coming from China after the delegates meeting will boost the growth of this sector along with other complementary industries.

Pakistan, as the 5^th most populous country in the world with more than 220 million people and a growing middle class, has a great potential in this sector. Among the total population, 36.38 percent live in urban areas, while 63.62 percent live in rural areas. There is a growing demand for housing which can be encountered with the help of Chinese investment. Moreover, China, Pakistan’s all-weather friend, is keen to bring economic prosperity through investing in different industries.

Credit: Independent News Pakistan-WealthPk