The federal cabinet approved on Monday the establishment of a Real Estate Regulatory Authority (RERA) in the country.
Builders and developers will now have to seek permission from RERA before initiating any new housing project, decided the federal cabinet. They are also barred from selling and buying plots without its approval.
Dr Firdous Ashiq Awan, Prime Minister Imran Khan’s special assistant, told reporters that the move was aims to “regulate” and “facilitate” the real estate sector.
She said that it is only possible when we have an authority to protect the real estate sector.
Arif Jeewa, a member of the Association of Builders and Developers of Pakistan, however, believed that the government’s step will have a negative impact on the construction industry.
“No stakeholder was taken on board [before making this decision],” Jeewa told SAMAA TV.
He added that there is a Real Estate Regulatory Authority in Dubai and the government wants to implement it here.