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Business Recorder
4 days ago
- Business
- Business Recorder
Unsafe buildings: ABAD underscores need for comprehensive reforms
KARACHI: The Association of Builders and Developers (ABAD) has demanded for immediate legislative action and comprehensive reforms to address the growing crisis of unsafe buildings in Karachi following the recent tragic collapse of a five-story building in Lyari. Speaking at a press conference held at ABAD House, Muhammad Hassan Bakhshi said that the competent authority should take immediate legislative action and comprehensive reforms to address the growing crisis of unsafe buildings in Karachi to avert tragic incidents of building collapse in the city. Bakhshi along with Senior Vice Chairman Syed Afzal Hameed, Vice Chairman Tariq Aziz, and other said that the city has witnessed 12 such incidents resulting in 150 deaths over the past few years, attributing these tragedies to 'corruption, greed, and negligence.' The ABAD chairman also criticised the Sindh government for failing to enact proper legislation regarding dilapidated buildings, adding that a disturbing pattern where property owners deliberately wait for buildings to collapse to claim plot ownership was observed. He requested the Sindh government to find solutions for approximately 700 identified unsafe buildings across the city. 'These buildings should be inspected with the assistance of National Engineering Services Pakistan (NESPAK),' he urged. ABAD chairman also pointed out the widespread illegal construction in the city, where additional floors are being added to existing structures without proper authorisation. 'These constructions put public life and property at risk,' he said and added that such buildings typically have a lifespan of only 15-20 years. Bakhshi alleged that local administration, police, and relevant authorities are complicit in these illegal activities, while vulnerable populations are forced to live in these dangerous structures. He urged the government to increase compensation amount from Rs 1 million to Rs 2.5 million. The chairman ABAD further revealed that over the past seven years, authorities like MDA and LDA have collected over Rs 25 billion rupees for residential schemes that have never been delivered to the public. Bakhshi proposed that ABAD could construct dilapidated buildings within 700 days and is prepared to build 100,000 houses if requested by the Sindh government, suggesting the government to collaborate with Chinese companies in this regards. Copyright Business Recorder, 2025
Business Recorder
4 days ago
- Politics
- Business Recorder
Over 700 ‘dangerous' buildings in Karachi pose threat to lives, says ABAD chairman
Around 700 dangerous and hundreds of thousands of illegally and poorly constructed buildings in Karachi continue to pose a constant threat to the lives and properties of residents of the metropolitan city, Association of Builders and Developers (ABAD) chairman Muhammad Hassan Bakshi said on Tuesday. Speaking at a press conference at ABAD House, Bakshi rejected a government-formed committee investigating the recent building collapse in Lyari, demanding that representatives from the private sector be included in the inquiry. A five-story residential building collapsed in Karachi's Lyari last week, killing 27 people. After the building incident, Sindh government removed Ishaq Khowro from his position as Director General of the Sindh Building Control Authority (SBCA). Shahmir Khan Bhutto has been appointed as his replacement. 'In the past five years, collapses of illegally constructed buildings have claimed 150 lives,' Bakshi said, attributing to 'corruption, greed, and government negligence'. 'Sindh government is showing no interest in developing a master plan for Karachi,' he said. 'Around 700 dangerous and hundreds of thousands of illegally and poorly constructed buildings in Karachi continue to pose a constant threat to the lives and properties of residents,' Bakshi warned. ABAD is willing to reconstruct all 700 dangerous buildings, according to its chairman, who demanded that families of those who died in the Lyari tragedy be compensated with Rs2.5 million each. Those rendered homeless should receive Rs1 million in aid, Bakshi added. He claimed that additional floors were being constructed illegally without approval, and the foundations and roofs of such buildings were only suitable for 15 to 20 years. 'Local authorities, police, and relevant officials are complicit in these illegal constructions, while residents, out of necessity, are forced to live in hazardous conditions,' ABAD chairman claimed. Construction sector: builders, developers call for 15-year tax policy Bakshi warned that in the event of an earthquake, thousands of these structures could collapse, leading to large-scale loss of life. He called for anti-terrorism charges to be filed against the builders responsible for illegal constructions and the government officials who enable them. Bakshi further criticised Sindh government for 'failing to enact effective legislation on the issue of dangerous buildings' and urged authorities to conduct a structural survey with the help of credible institutions such as NESPAK or NDMA. Bakshi identified the areas where dangerous buildings were located. The areas he claimed about including Delhi Colony, Liaquatabad, Lyari, and others. He further claimed that authorities like Malir Development Authority (MDA) and Lahore Development Authority (LDA) had collected over Rs25 billion under the guise of residential schemes but had failed to deliver even a single completed project. Meanwhile, ABAD chairman appealed to Chief Minister Murad Ali Shah to launch housing schemes in Sindh similar to those introduced by Maryam Nawaz in Punjab, noting that there is 'a severe housing shortage in Sindh, which is being exploited by the mafia'. 'If Sindh government assigns ABAD the task of building 100,000 houses, the association is ready,' Bakshi said.
Business Recorder
05-07-2025
- Politics
- Business Recorder
Karachi building collapse: ABAD for replacing all dilapidated structures with quality edifices
KARACHI: Association of Builders and Developers of Pakistan (ABAD) has proposed voluntarily replacing all dilapidated structures in Karachi with quality edifices, following a deadly building collapse in Lyari that claimed eight lives and left up to 25 others trapped under debris. The tragic incident occurred in the Baghdadi area of Lyari when a six-story residential building housing 20 apartments collapsed, killing eight people including a seven-year-old boy. The building, constructed in 1974 and home to six families, had been previously declared dangerous by city authorities, but no action was taken to relocate residents or reconstruct the structure. The collapse has reignited concerns about Karachi's building safety crisis, with over 400 structures in the city officially classified as dangerous. The incident highlights 'professional incompetency and high misconduct' within the Sindh Building Control Authority (SBCA), which has allegedly enabled the mushroom growth of illegal construction throughout the city. According to the records, approximately 100,000 illegal residential buildings have been constructed in Karachi over the past decade, allegedly with the connivance of SBCA officials. Karachi Mayor Murtaza Wahab responded to the tragedy by placing responsibility on the victims themselves. 'Today's unfortunate event is proof that when the government tells you something, listen,' Wahab said, acknowledging that authorities had only warned the inhabitants about the building's dangerous condition. The mayor admitted that more than 400 buildings in Karachi have been declared dangerous, saying that the government faces two options: 'either persuade people to leave or evict them forcefully.' However, he noted that administrations typically prefer persuasion over force. ABAD Chairman Muhammad Hassan Bakshi while expressing his condolence over the tragic incidents, said: 'Despite raising concerns multiple times, the Sindh government has failed to take effective action against illegal construction'. 'The lack of effective action has worsened the situation,' Bakshi said, warning that illegal constructions use poor quality materials and lack professional oversight, greatly endangering public safety. He offered a comprehensive solution to address the city's unsafe building crisis, saying that ABAD is ready to replace dilapidated structures with high-rise buildings meeting international standards. The proposal includes providing free, safe, and modern housing to current residents, contingent on appropriate legislation from the Sindh Assembly to proceed legally. He urged the Sindh government to urgently survey dangerous buildings, begin evacuations, and seriously consider ABAD's offer to ensure the long-term safety of Karachi's citizens. Copyright Business Recorder, 2025
Business Recorder
12-06-2025
- Business
- Business Recorder
Pakistan's construction industry says concerned at curbs on non-filers
KARACHI: The construction industry has raised serious concerns over proposed financial restrictions for non-tax filers in the federal budget 2025-26, warning that the measures could accelerate capital flight from this sector already experiencing negative growth for the last three consecutive years. Hassan Bakshi, Chairman, Association of Builders and Developers of Pakistan (ABAD), expressed these concerns while speaking to Business Recorder on Wednesday, highlighting the potential adverse impact on the construction sector's recovery prospects. He said the primary concern is about the proposed restrictions that would bar non-filers from purchasing immovable property in Pakistan. He argued that such measures would create a negative impact on the construction sector that is already struggling to regain momentum. According to Bakshi, ABAD has already engaged with Prime Minister Mian Muhammad Shehbaz Sharif regarding these restrictions. 'We have discussed it with the prime minister, expressing our concerns on the said restriction.' He believed that the proposal was neither included under the IMF recommendations nor with the PM's consent, who has assured ABAD not to implement it. 'ABAD is planning a delegation visit to Islamabad next week to further discuss the matter with the high-ups,' he informed. Rather than imposing pre-emptive restrictions, Bakshi suggested, allowing non-filers to purchase immovable properties, which would provide the government with comprehensive financial details of these individuals. This information could then be utilised to bring them into the tax net, which he believed would be a more inclusive approach for broadening of tax base. Chairman ABAD warned that the enforcement of these restrictions could have far-reaching consequences beyond domestic markets. 'If the said restrictions were enforced, the construction sector, which is already facing negative growth for the last three years, won't see any healthy business activities in the coming financial year.' Bakshi said that the measures would expedite the flight of capital, especially to Middle Eastern countries, which are now offering partnerships to our developers with their expertise, not investments. He said that withholding tax on property purchases has been proposed to be reduced for the buyers, but the tax burden on sellers has been recommended to increase proportionally, adding that this approach would not create any positive impact, as it merely shifts the tax burden rather than reducing it. Despite the concerns, the ABAD chairman acknowledged several positive proposals in this budget, including the introduction of tax credits to encourage mortgage financing and the reduction in stamp duty for Islamabad. Copyright Business Recorder, 2025
Business Recorder
12-06-2025
- Business
- Business Recorder
Construction industry says concerned at curbs on non-filers
KARACHI: The construction industry has raised serious concerns over proposed financial restrictions for non-tax filers in the federal budget 2025-26, warning that the measures could accelerate capital flight from this sector already experiencing negative growth for the last three consecutive years. Hassan Bakshi, Chairman, Association of Builders and Developers of Pakistan (ABAD), expressed these concerns while speaking to Business Recorder on Wednesday, highlighting the potential adverse impact on the construction sector's recovery prospects. He said the primary concern is about the proposed restrictions that would bar non-filers from purchasing immovable property in Pakistan. He argued that such measures would create a negative impact on the construction sector that is already struggling to regain momentum. According to Bakshi, ABAD has already engaged with Prime Minister Mian Muhammad Shehbaz Sharif regarding these restrictions. 'We have discussed it with the prime minister, expressing our concerns on the said restriction.' He believed that the proposal was neither included under the IMF recommendations nor with the PM's consent, who has assured ABAD not to implement it. 'ABAD is planning a delegation visit to Islamabad next week to further discuss the matter with the high-ups,' he informed. Rather than imposing pre-emptive restrictions, Bakshi suggested, allowing non-filers to purchase immovable properties, which would provide the government with comprehensive financial details of these individuals. This information could then be utilised to bring them into the tax net, which he believed would be a more inclusive approach for broadening of tax base. Chairman ABAD warned that the enforcement of these restrictions could have far-reaching consequences beyond domestic markets. 'If the said restrictions were enforced, the construction sector, which is already facing negative growth for the last three years, won't see any healthy business activities in the coming financial year.' Bakshi said that the measures would expedite the flight of capital, especially to Middle Eastern countries, which are now offering partnerships to our developers with their expertise, not investments. He said that withholding tax on property purchases has been proposed to be reduced for the buyers, but the tax burden on sellers has been recommended to increase proportionally, adding that this approach would not create any positive impact, as it merely shifts the tax burden rather than reducing it. Despite the concerns, the ABAD chairman acknowledged several positive proposals in this budget, including the introduction of tax credits to encourage mortgage financing and the reduction in stamp duty for Islamabad. Copyright Business Recorder, 2025
