KARACHI - Vice Chairman of Association of Builders and Developers of Pakistan (ABAD) Arif Yousuf Jeewa on Monday warned the government that unilateral decisions of the Securities and Exchange Commission of Pakistan (SECP) and the State Bank of Pakistan (SBP) regarding the construction industry will prove fatal for the economy of Pakistan. If rulers did not pay heed to concerns of construction industry, builders and developers will have no choice other than moving their businesses out of the country, he warned.

Reacting on the decision of the SECP and SBP, in a meeting held earlier, to constitute a joint SECP-SBP committee in order to improve the regulatory regime to make recommendations for effective regulation of the real estate sector to the federal and provincial governments, he said that the SECP itself had clarified in categorical terms that “the SECP does not in any manner intends to regulate the business of real estate, but its focus is to ensure that the companies registered with the SECP having real estate as their principal line of business, operate under certain rules and regulations in order that they gain confidence of the public”. It is unfortunate that a regulatory body is openly lying regarding rules and regulations, which can be considered that the SECP is conspiring against the construction industry on behalf of “invisible” elements, who want to destroy not only the construction sector but almost 100 other industries connected with this sector, he lamented.

Arif Jeewa said that it is duty of government to regulate various sectors of the national economy but the rulers should remember that it is also the duty of the government to protect local industries. He demanded of the government to expose the hidden hands behind unusual activities of the SECP otherwise the ABAD will be forced to believe that the govt itself wants to destroy the construction industry of the country so that builders and developers leave this country and invest in other countries like UAE.

He said that the ABAD has never opposed taxing this sector, on the contrary, the ABAD has proposed fixed tax on construction industry for which the government and the finance minister had appreciated the ABAD. The fixed tax is other than various taxes being paid by builders and developers, he said adding that the government will held responsible in case of total collapse of the construction industry and flight of capital.

The vice chairman demanded of the government to direct the SECP and the SBP to do not try to squeeze the construction sector by forming sector-oriented laws because such step will never be in the interest of country’s economy.