Muhammad Rizwan Adhia holds a prominent position in the construction sector and is the soul and CEO of Country Builders and Developers. He is highly regarded in the Construction Industry. Muhammad Rizwan Adhia is Former Vice Chairman in the Association of Builders and Developers. He also holds the post of IIPP & Acting President Rotary Club of Karachi Platinum. Muhammad Rizwan Adhia has a keen eye on the construction sector and is committed to provide facilities to the people in the construction sector. That is why in every one of his projects he keeps in mind the necessities of a comfortable life for the people. This thinking is also a proof of his success.
Where did the construction industry stand in the country after the Coronavirus?
Muhammad Rizwan Adhia: After COVID19, the country’s construction industry had slowed down due to its and field related Persons were facing difficulties. The package given to the construction sector by Prime Minister of Pakistan Imran Khan gives some life in the construction sector. It is recovering and the work is in full swing. Market support has been received as a result of the Prime Minister’s waiver of non-questioning of the proceeds from the sale and purchase of property till December, but the important thing in Pakistan, especially in Karachi, is that the city has a population of 2.5 to 3 billion. There are a lot of real buyers here and this city needs its own. Karachi’s population is growing rapidly, in any city of the world. The proportion of rural and urban population in the city is up to 3% but in Karachi the proportion of rural and urban population is 5 to 6%, Karachi is the only city. People from other Province settling and can afford it, to live in Karachi. That’s why apartments thrive. Due to the rapid growth of the population, we do not worry that the work of the industrial sector will stop.
How much are government policies supporting the construction industry?
Muhammad Rizwan Adhia: There is no doubt that government policies are not beneficial for the industrial sector, whether the policy of Federal or Provincial governments face complications with regard to the construction industry including project approval issues and other issues. Although the government is trying to improve it, the Sindh government is also playing its role and there has been a lot of cooperation from the Federal government. Importantly, the Prime Minister of Pakistan Imran Khan is very serious about the Karachi issue. Every week he sits in the Chief Secretary’s House with the heads of the concerned agencies and the private sector stakeholders including the Chairman of ABAD and meets with them at the zoom. He also listens to our suggestions and reviews the difficulties faced. The problems in this sector are decreasing due to the meeting with the Prime Minister but it will take time to solve the problems. Before today, no government has intervened to increase the efficiency of this sector. Imran Khan’s achievement is that he gave construction industry status, because of which the benefits that we did not get before are now available.
What is the impact of the construction industry on the national economy?
Muhammad Rizwan Adhia: The construction industry is the backbone of any country because when activities start in this sector, the economic activities of the related industries also increase. The Prime Minister says that there are about 45 small industries connected to the construction industry but in our view there are 72 connected industries. Whatever the number, it is noteworthy that this sector along with its growth leads to the development of other sectors When a house is built, every sector benefits.
Can the rapidly growing population in the city affect the social system?
Muhammad Rizwan Adhia: Whenever builders start work in the city, they have to pay better minute charges. If we get approval to build a 15 storey building in a place, then we have to pay 5 floor betterment charges. This charge is received by Karachi Water Sewerage Board, Karachi Municipal Corporation, Local Government. Even if every institution that is receiving this amount in terms of development, the city’s infrastructure can never be damaged if all the money is spent on it. It is true that institutions do not use these funds properly which leads to more problems.
Why Karachi is not a master plan, why is it under the administrative control of many institutions?
Muhammad Rizwan Adhia: We have raised the issue in many forums that Karachi should have a master plan and there should be only one institution implementing its master plan. Surprisingly, there are six cantonment boards in Karachi which have their own separate policies. Clifton Cantonment Board (CBC), Malir Cantonment Board (MCB) are separate, their CEO and vision are also different. Similarly, Sindh Building Control Authority (SBCA), Malir Development Authority (MDA), Lyari Development Authority (LDA), Karachi Municipal Corporation (KMC) and Karachi Development Authority (KDA) have separate bodies and manage their own system. This city is entangled with institutions. We believe that there should be only one Administrative in Karachi which has complete control. Now there is a need to make a master plan of a mega city like Karachi. It will be done in an orderly manner otherwise any construction will be detrimental to the city and its citizens. He said that the Association of Builders and Developers has always raised the issue of a master plan and full control of a one institution. The Supreme Court of Pakistan has also talked of formulating a master plan for Karachi. Call the town planner and start work on the master plan of Karachi. But it is also important to remember that this is not a one day job but this work can take up to 3 years.
What problems does the construction sector face from the organizations?
We need to keep pace with the world. Dubai is a masterpiece of modern development and they made the world’s tallest buildings. It is not allowed to build a building more than 130 feet high on Shahra-e-Faisal in Karachi, Pakistan. Then how will the buildings be built? If high-rise buildings are constructed, the cost is reduced while construction through project expansion also increases the cost and requires more resources. Builders have to pay a minimum of Rs. Instead of spending it on development, the DA pays its employees in the form of salaries. It is not the job of the builders to pay the salaries of government employees. He invested heavily in development. After selling the land, KDA receives more money from us for re-certification of the same land. Large land is no longer available in Karachi city so people are building projects outside the city. At present, people do not even have a roof over their heads. According to a 2018 World Bank report, there is a shortage of 12 million houses in Pakistan, which may have grown too close to 18 million, but the government has No details available.
How much is the one window operation benefiting the construction industry?
Muhammad Rizwan Adhia: One window operation has started in Sindh Building Control Authority which is pleasant but there is a better online system. If we look at Dubai, builders or businessmen have no contact with the institutions but they are online. Fill out the form, if there is any objection, send it online, if there is any shortcoming, send it again the next day, and as usual, the construction industry can easily get approval in Dubai in a week or 15 days. What is special about online is that there is no connection between the concerned officer and the business and there is no money transaction due to which the construction sector in Dubai is developing rapidly.
What is the plan of the Prime Minister’s New Pakistan Housing Scheme in your view?
Muhammad Rizwan Adhia: The problem of the people of Pakistan and especially Karachi is that the people here do not have a roof. The federal government is giving the house in low amounts. It is certainly a good move because at the moment you can get a plot or a flat for a small amount, it is not possible even if you can get a plot outside the city, it is very good. But it is not possible to complete the Prime Minister’s 5 for million housing projects in this period. The good thing is that the work has already started in Quetta, Peshawar, Rural Sindh and many other small towns in Punjab except Karachi, if the government in the next two and a half years. If 500,000 houses are built, it will be a great achievement of the Federal Government. There is a difference between the policies of the Sindh and the Federal Government in the construction sector, but the Sindh government seems to be serious in solving the problems of the construction industries to some extent.
What is the attitude of the Federal Board of Revenue (FBR) towards the business community now?
Muhammad Rizwan Adhia: There may be discrepancies in the documents of the Federal Board of Revenue. In their view, the attitude of the FBR may be bitter, but the attitude of the FBR with small businessmen has improved considerably. The tax burden will be less in the coming days. The revenue of the government will increase as much as now. Heavy taxes are being collected in terms of transfers. Due to which people buy lands but do not transfer because not everyone can pay its heavy taxes. I think the lower the tax rate the government will benefit so much, taxes should be so that people can pay easily. Federal and Provincial Governments should also listen to us. We are citizens of this country, businessmen and giving benefits to the government. No, after agriculture, the construction industry is a labor-oriented business.
Interview by Syed Farooq Shah CEO theazb.com
