CategoriesConstruction News

SBP takes another step to boost investment in real estate

 

SBP takes another step to boost investment in real estate

LAHORE/KARACHI: In what is being seen as a positive development for the real estate sector and capital markets, the State Bank of Pakistan on Wednesday reduced the risk weight of banks/DFIs from 200 per cent to 100pc on their investment in units of Real Estate Investment Trusts (REITs) for five years to facilitate development of housing finance and capital markets.

“In order to provide further support to the development of real estate sector, State Bank has amended its capital adequacy regulations by significantly lowering the applicable risk weight from 200 per cent to 100 per cent on banks and DFIs’ investments in the units of REITs,” said a SBP circular.

Besides the revision in the capital adequacy treatment for banks’ investments in REITs, the circular said, the banks’ investment (in REITs) will now be categorised in the “Banking Book” instead of “Trading Book”. However the central bank added that it “may review this revised treatment after a period of five years based on the banks’ exposure and performance of the REITs sector”.

Halving of risk weight of banks, DFIs to help REITs

According to the SBP, “With the changes in capital adequacy regulations, banks and DFIs will now be able to increase their investments in REITs without the need to allocate relatively large amount of capital.

“This will, in turn help banks to promote development of real estate sector in the country. The enhanced participation of financial institutions, backed by regulatory initiatives, would also encourage REIT Management Companies to launch new REITs, providing further boost to the Government’s agenda for development of housing and construction sectors,” it said.

‘A good move’

“This is a good move since the risk weight for banks’ investment in the real estate sector was very high. Banks will now be able to increase their investments in REITs without allocating relatively large amounts of capital. This move would facilitate investment in REITs and potential launch of new REITs,” Samir Ahmed, Knightsbridge Capital Group CEO, told Dawn.

“This change in capital adequacy treatment for banks’ investments in REITs has opened up new avenues of financing for REITs. This means REITs can now arrange financing from the banks; earlier they had to rely on their own equity. The market participation in REITs is likely to increase,” he said.

REITs are companies like closed-end mutual funds that own, operate or finance income-producing real estate. They raise funds from the general public and institutions and deploy these funds through investment in real estate properties. REITs provide an investment opportunity that makes it possible for everybody to own and benefit from real estate by allowing them to invest in portfolios of real estate assets the same way they invest in equities.

“The stockholders of a REIT earn a share of the income produced without actually having to go out and buy, manage or finance a property,” Mr Ahmed said.

REITs invest in a wide range of real estate property types, including offices, apartment buildings, warehouses, retail centres, hospitals, data centres, infrastructure and hotels. Most REITs focus on a particular property type but some hold multiple types of properties in their portfolios.

The SBP had earlier amended provisions of its existing prudential regulations to encourage enhanced participation of banks in REITs that enabled them to make higher investments in REITs to the tune of 15pc of their equity as against the previous limit of 10pc.

Moreover, the SBP has also allowed the banks to count their investments in shares, units, bonds, TFCs and Sukuks issued by the REIT management companies toward achievement of their mandatory targets for housing and construction finance.

“The amendments in SBP’s capital adequacy regulations will further incentivise banks to contribute towards a well-functioning capital market for real estate sector,” said the SBP.

Taxation challenges remain

Welcoming the development, Arif Habib Dolmen Real Estate, which owns the country’s only listed REIT, stated that REITs were a quintessential instrument for the government to document real estate and bring transparency in this sector.

Speaking from Karachi, Mohammad Ejaz, an analyst at Arif Habib Securities, said both SBP and SECP had done their part to encourage establishment of REITs in the country. “Now it is FBR’s turn to provide an enabling environment and facilitate the REIT investments by resolving the taxation challenges,” he said. Elaborating, he said some taxation anomalies such as 25pc tax on dividend income still exist.

“This should be cut to 15pc since REITs distribute 90pc of their profits and have to compete with the large, obscure and informal investors operating in the country’s real estate sector. With the government focused on encouraging construction and housing to boost the economy, REIT is one formal, documented way to promote the real estate sector that largely operates in the grey. Taxation is a major reason we don’t see much development in REITs.”

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The post SBP takes another step to boost investment in real estate appeared first on Dawn News

Rs6.5b released to buy land for Ring Road
CategoriesConstruction National News Real Estate News

Rs6.5b released to buy land for Ring Road

To get the long-planned, 65 kilometre-long Rawalpindi Ring Road project off the ground, Rs6.5b released to buy land for Ring Road by the government.

This was disclosed by the Punjab Project Management Unit (PMU) Deputy Director M Abdullah on Sunday.

He said that the proposed project includes the construction of industrial zones as well as a health city, dry port, bus and truck terminals and theme parks.

In a detailed presentation to traders of the city as part of a briefing session on the Ring Road at the Rawalpindi Chamber of Commerce and Industry (RCCI), the deputy director said that a proposal for rapid rail transit was also under consideration in the project.

He assured that suggestions of the stakeholders will be shared with the relevant officials so that they can be incorporated into the project.

RCCI President Nasir Mirza said that the project can prove to be a game-changer for Rawalpindi as the proposed industrial zones can turn the city into a hub of trade activities.

The stakeholders, he said, should be taken on board while finalizing the allocation for and demarcation of industrial zones, he added. The RCCI president further emphasized that this was an important project for the development of Rawalpindi and should be completed on priority.

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The post Rs6.5b released to buy land for Ring Road appeared first on The Express Tribune October 12th, 2020
Economic Zones along Ring Road approved
CategoriesConstruction National News Real Estate News

Economic Zones along Ring Road approved

Rawalpindi Development Authority (RDA) on Wednesday approved setting up of economic zones along Ring Road which will be controlled by the civic body’s zoning regulations.

This was decided at the 49th governing body meeting of the RDA which was presided over by its chairman Tariq Mehmood Murtaza.

Though the Punjab government has yet to start the process to procure land for the proposed Ring Road Project, the RDA governing body declared the area along the Ring Road as city limits.

Under the plan, Punjab government will execute the project through Lahore Ring Road Authority instead of Rawalpindi Development Authority. It has already notified Rawalpindi’s commissioner as project director.

Zones will be controlled by the civic body’s regulations

A formal notification for setting up of the economic zones will be issued by the Punjab government.

Future construction activities within these zones would be controlled in accordance with the principles of town planning and zoning regulations, the governing body said.

The governing body also approved RDA City, a 3,000-kanal residential project.

The project will be LDA-style and for this purpose governing body has made a five-member technical committee under the supervision of MPA Latasub Satti.

The committee will compile its report on the acquisition of land for RDA City project and other matters within fifteen days.

A short-term consultancy was also approved for this housing project to prepare a feasibility report aimed at identifying location suitable for the construction of RDA City.

The RDA director general presented each agenda before the governing body. Agenda items in detail were approved after questions and answers from various members.

Feasibility study for construction of metropolis zone along with New Islamabad Airport was also approved.

Besides this, hiring of a survey company was also approved which would determine encroachments along Leh Expressway.

Approval was also given to construct buildings on RDA approved commercial roads in accordance with the new building bye-laws so that the construction industry could flourish.

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Land acquisition for Ring Road to begin by end of the week: RDA Chairman
CategoriesConstruction National News Real Estate News

Land acquisition for Ring Road to begin by end of the week: RDA Chairman

Land acquisition for the Rs 52 million Ring Road project will begin by the end of the week, Rawalpindi Development Authority (RDA) Chairman Tariq Mahmood Murtaza said on Tuesday.

“The mega project is being launched by the PTI government to ease traffic, control urbanisation and shift small industrial units outside the city under the vision of Prime Minister Imran Khan on a private public partnership basis,” he said at a press briefing at the RDA offices.

In addition to Mr Murtaza, Water and Sanitation Agency (Wasa) Managing Director Raja Shaukat Mehmood, Wasa director admin and RDA deputy director finance Mohammad Junaid Taj Bhatti, RDA Director Planning Mohammad Ijaz and other RDA and Wasa officials attended the briefing.

Mr Murtaza said that since taking charge as RDA chairman, he has been trying to provide public service facilities.

“In order to make this effort a reality, standard operating procedure (SOP) has been set up to approve building plans within 30 days, change of land use approval within 45 days, approval of housing schemes within 75 days, digitisation and record scanning started to save office records and construction of one window has also started,” he said.

Rawalpindi Ring Road Project is being launched to ease traffic, control urbanisation and shift small industrial units outside the city.

According to SOP, building plan approvals began on July 1, the RDA chairman said that 135 building plans were submitted in the last two months of which 117 were residential and 18 commercial.

He added that the RDA has fixed a period of 30 days but has managed to approve 50pc of the building plans in half the time. Two applications for change of land use have been received have been approved.

“The RDA has earned Rs30 million in these two months. The early approval of the building plans has created confidence among the people. The people-friendly atmosphere will be further improved in the coming days and more facilities will be given to the people,” he said.

“We are also trying to bring maps, housing schemes and other services online so that the applicant can stay home,” he said.

On illegal housing societies, Mr Murtaza said that the RDA would take action and move the courts against illegal housing societies that did not obtain no-objection certificates from the RDA but launched print, electronic and social media campaigns featuring celebrities from within the country and abroad.

About Wasa, he said that floods came all over the country, but the Wasa managing director’s strategy and his personal interest kept a flood-like situation from emerging in Rawalpindi.

He said in the past, casualties including the loss of life and property, had occurred but not a single person died because of Leh Nullah this monsoon.

Mr Mehmood from Wasa said the agency launched its One Link bill payment service for the convenience of its customers, who can now pay their water bills through any bank’s ATM machine as well as using internet banking and mobile banking applications.

He said that with the signing of the online agreement, the online bank transaction will be transferred to Wasa’s accounts immediately, leaving no possibility for error.

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The post Land acquisition for Ring Road to begin by end of the week: RDA Chairman appeared first on Dawn News September 10th, 2020
Punjab Govt approves Rawalpindi Ring Road Project
CategoriesConstruction National News

Punjab Govt approves Rawalpindi Ring Road Project

LAHORE: Punjab Chief Minister, Usman Buzdar, has given the approval to start work on Rawalpindi Ring Road project under Public-Private Partnership.

Addressing a meeting in Lahore on Saturday, the chief minister said that the provincial government will provide all possible support and facilities for completion of Ring Road project.

A comprehensive business model is also being prepared for the promotion of public-private partnerships in the health sector.

The 65.8km ring road will start from Radio Pakistan Rawat N-5 and terminate at Sangjani N-5. Construction of Special Economic Zones (SEZs), including industrial, educational, recreational, medical health, residential and aerotropolis etc is a key component of the RRR.

Earlier in June, Punjab Chief Minister Usman Buzdar had approved the Lahore Ring Road Southern Loop-III project which would be completed in one year.

Punjab CM Usman Buzdar gave the approval for the road project while chairing a high-level meeting of Lahore Ring Road Authority (LRRA) today.

An agreement will be signed between Lahore Ring Road Authority (LRRA) and National Logistics Cell (NLC) in a ceremony this month where the chief minister will be the chief guest.

CM Usman Buzdar said that the Lahore Ring Road Southern Loop-III will be constructed from Raiwind Road to Multan Road under the public-private partnership.

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Innovative Building Blocks are made of 100 percent Plastic Waste
CategoriesConstruction International News

Innovative Building Blocks are made of 100 percent Plastic Waste

Innovative Building Blocks are made of 100 percent Plastic Waste by ByFusion to make building more sustainable. The company created ByBlock, the first construction-grade brick made entirely out of recycled plastic materials.

What is ByFusion?

 

“We have been working hard over the past several years to develop an innovative system to help the recycling industry address the plastic waste crisis by being able to recycle plastics that were previously considered unrecyclable,” CEO Heidi Kujawa told Manufacturing.

The first thing you’ll probably notice about the large building blocks is how cool they look. Each one has a mix of vibrant colors because the plastic waste it’s formed from — like water bottles, packaging and other single-use items — is still visible.

Each brick is made by heating, compressing and fusing the recycled materials together. It’s for this reason that ByBlock boasts itself as the ultimate landfill diversion solution. ByFusion works with material recycling facilities, waste management operations, municipalities and corporate partners to upcycle their rubbish. The zero-waste process uses a whopping 30 tons of trash per month.

But construction workers won’t be giving up quality when they use ByBlocks. Unlike concrete, these don’t crack or crumble. You can peep a worker in the video attempting to smash one with a hammer — it doesn’t give. The concrete block on the other hand shatters after a few hits. Moreover, ByBlocks don’t require glues or adhesives, making them easier and quicker to install.

According to ByFusion, ByBlocks are ideal for sheds, accent walls, furniture, non-load bearing walls, privacy fences and most building projects.

The U.S. represents only 4 percent of the world’s population but produces 12 percent of its waste. That’s largely because America only recycles 35 percent of its waste, making it the only developed nation whose waste outpaces its recycling.

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Australia’s New Road Asphalt from Coffee Cup Recycled Waste
CategoriesConstruction International News

Australia’s New Road Asphalt from Coffee Cup Recycled Waste

Australia’s New Road Asphalt from Coffee Cup Recycled Waste

An Australian asphalt company is hoping it will soon be able to use discarded coffee cups to pave the country’s roads.

To make this happen, State Asphalt Services in western Sydney has teamed up with Simply Cups, a recycling program that helps turn paper and plastic cups into new products. The two entities were brought together by an organization called Closed Loop, which matches companies selling waste to companies that can turn that waste into fresh material.

State Asphalt Services has taken the different elements of used coffee cups — paper, plastic, lids, and liners — and turned them into cellulose, which binds a road surface together. A test strip held together with this substance has proven to be strong and able to withstand heavy trucks driving back and forth on it. “It’s a better performance product than what we were producing before,” State Asphalt Services director John Kypreos told The Guardian.

His company is getting closer to being able to use the product on actual roads in Australia, and Kypreos said the goal is to one day have a road made entirely of recycled material. He also hopes his collaboration inspires similar partnerships that can cut down on waste. – Catherine Garcia

Australia’s New Road Asphalt from Coffee Cup Recycled Waste

#Australia #roads #surfaced #recycled #waste #coffee #cups

Plastic Building
CategoriesConstruction International News

Plastic Building

Reading Time: 5 minutes

Plastic Building – Recycled Plastics in the Construction Industry

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The construction industry is one sector that continually adapts to fit societal interests and needs. Building materials change over the decades as useful innovations come out, and companies revamp their structural techniques to develop safer buildings.

As trends transform, more businesses are turning toward sustainable building materials to comply with consumer desires and LEED standards. Plus, their efforts contribute to a healthier environment.

Recycled plastic is one material catching on within the sustainable construction movement. With so much plastic already in existence, it makes sense to convert it to other uses rather than letting it sit in landfills or pollute waterways.

Several methods exist for integrating this material within commercial construction, and they provide benefits traditional materials don’t. More builders will begin using recycled plastic and other sustainable materials in the face of rising climate change.

How Does Recycled Plastic Work?

Recycled plastic is an innovative solution to construction, requiring less energy to create and releasing fewer fossil fuels into the environment. When it reaches the end of its life, builders can recycle it again, reducing the need to manufacture new plastic.

Builders should always consider the type of plastic needed for construction. All types function differently in various environments. Most of them react to changes in temperature, becoming brittle or soft, and construction workers must know which to use for the appropriate structure.

For example, one might avoid using plastic lumber on decks, as they reach high temperatures in the summer. Likewise, freezing climates can cause synthetic structures to become fragile.

The plastic resin classification system informs consumers and manufacturers of which plastics to recycle and how. PVC often comes in the form of shower curtains and tubing, and companies can recycle it into window frames or vinyl flooring. High-density polyethylene — or HDPE — is durable, cost-effective, and well-known as one of the safer forms of plastic. It also resists temperature changes better than other types, making it ideal for outdoor structures such as fencing and roofing.

Negative Impacts of Plastic Manufacturing

Reusing existing plastic would reduce the production of virgin plastic, which people often use once and discard. Scientists have researched the time it takes for plastics to degrade, finding that it lasts hundreds of years before disintegrating. Others theorize it never does. That’s a lengthy lifespan for a material that companies only began mass-producing in the 1950s.

Plastics break down into micro plastics instead of degrading. Many of these particles are so small they can’t be seen with the naked eye. Their tiny size allows them to infiltrate the world’s drinking water on a massive scale. A study conducted by Orb Media found 83 percent of their tap water samples contained micro plastics, while 93 percent of their bottled water samples also possessed these particles. It’s safe to say that few public water sources are exempt from contamination.

Virtually all plastic comes from fossil fuels, as 90 percent of ethylene — a chemical used in creating plastic — is sourced from natural gas. Fossil fuels don’t only cause harmful emissions, however. It’s possible that harvesting these oils heats the Earth from within, creating higher temperatures in places of extraction. Average temperature in the Arctic, a location of frequent fuel extraction, has risen by 0.6 degrees Celsius every decade since the late 1970s.

Sustainable Alternatives for Plastics

Companies created 548 million tons of construction and demolition waste in 2015, which was over twice the amount of municipal waste. Using recycled plastic in building initiatives helps these businesses decrease the amount of refuse taking up landfills.

Recycled plastic can be used for roofing, flooring, and insulation. Insulation containing plastic is more energy-efficient than the traditional kind, and it’s easy to install. Plastic roofing and flooring are also simple to implement within current building techniques.

The alternatives keep growing in number. In 2017, MIT students researched the possibility of reinforcing concrete with recycled plastics. They found that irradiated plastic creates concrete that’s denser and stronger than its traditional counterpart. While this possibility is still under development, the ability to substitute even 1.5 percent of concrete with irradiated plastic can have sweeping environmental effects on a global scale.

Uses for recycled plastic in construction and their advantages:

  • Bricks – easy to assemble, inexpensive, fire resistant
  • Insulation – saves energy, easily installed, durable
  • Replacing lumber – no need to spray with toxic preservatives for protection from weather and insects
  • Concrete – stronger than standard concrete, environmentally friendly
  • Roofing tiles – inexpensive, light material, quick installation
  • Ceiling tiles – inexpensive, good for insulation, long lifespan
  • Floor tiles – inexpensive, easy to clean, easily installed, retain warmth
  • Carpeting – stain resistant, recyclable
  • Windows – good insulation, long lifespan, recyclable
  • Fences – durable, weather resistant, no need to paint

Humanitarian Efforts in the Construction Industry

Blue and Yellow PVC tubes

Recycled plastic has made building sustainable, affordable structures a possibility across the world. Conceptos Plásticos, a Colombian construction company, has built classrooms out of plastic brick in the Ivory Coast. It gathers its plastic from the streets of Bogotá and is currently extending collection efforts into the Ivory Coast.

Plastic litter is not only unsustainable, it also contributes to dirty water and breeds illnesses. By converting this material to a better purpose, construction companies keep locals safe and healthy while improving their quality of life.

The plastic classrooms are noticeably bigger and cooler than traditional ones, and builders can create them in a matter of weeks. The bricks are light, allowing for animal or human transportation instead of trucks, and there’s no threat of off-gassing from PVC materials.

These school buildings provide an eco-friendly way to reuse the tons of plastic waste that Abidjan and other Ivorian cities produce — only 5 percent of this waste currently undergoes recycling.

Building an Eco-Friendly Future with Recyclables

Recycled plastic is an excellent alternative to current construction methods, and environmental strain can lessen as its usage increases. Companies will save money while developing energy-efficient and safe buildings. In a world where environmental concerns are on the rise, every solution counts.

Written by: Holly Welles

Holly Welles is a real estate writer who covers the latest market trends in everything from residential to commercial spaces. She is the editor behind her own blog, The Estate Update, and curates more advice on Twitter.

First California Recycled Plastic Highway
CategoriesConstruction International News

First California Recycled Plastic Highway

The California Department of Transportation (Caltrans) has repaved a busy stretch of Highway 162 using recycled plastic bottles.

Source: CBS Sacramento

First California Recycled Plastic Highway

To make the recycled plastic roads, crews grind up the top 3 inches of old pavement and mix it with a liquid plastic polymer binder made largely from used plastic bottles. This mixture is then placed on top of the road.

Paving one mile of road with the new plastic-asphalt mix recycles about 150,000 plastic bottles and is estimated to last two to three times as long as traditional asphalt. The plastic-asphalt mixture eliminates the need for double layers and saves dozens of truck trips, reducing smog and greenhouse gas emissions.

“We’re excited about introducing a new sustainable technology and helping pave the way for recycled plastics throughout the state,” said Caltrans District 3 Director Amarjeet S. Benipal. “This process is better for the environment because it keeps plastic bottles out of landfills and helps reduce greenhouse gas emissions and reliance on fossil fuels.”

Millions of pounds of plastic have ended up landfills across California and in the Pacific Ocean where it breaks apart and harms marine life.

Some environmentalists are concerned that the new roadway would create little bits of microplastics which could enter the state’s waterways.

Caltrans officials plan to monitor and conduct detailed studies on the plastic-asphalt section.

E-Build Pakistan: Pakistan’s First Ever Online Buy & Sell Construction Industry Material & Services Portal
CategoriesConstruction National News News Zarkon Group

E-Build Pakistan: Pakistan’s First Ever Online Buy & Sell Construction Industry Material & Services Portal

What’s E-Build Pakistan?

E-Build Pakistan is Pakistan’s First Online Marketplace Portal to Buy & Sell Construction Material & Services that brings the country’s construction industry stakeholders and processes to a digital landscape.

From idea to execution, building the vision of EBP to a viable product was a year-long journey that will commence on 14 August 2020 when the web portal and mobile application will be made available nationwide.

E-Build Pakistan will provide national digital access to the key players in the construction industry to broaden the customer base, be a stimulator in the construction industry, open the market for new national & international construction brands to access the market, bring better products at competitive prices, help the construction industry to grow at least at 40% better rate, create online & rapid digital supply chain, connect the buyer to the supplier overriding the conventional price hikes, create employment for educated & talented youth, create dedicated income platforms for household women, contribute towards per capita income, to contribute in government National Housing Construction Schemes, to contribute in Digital Pakistan vision, create an internationally recognized construction learning programs for locally talented individuals, bringing e-learning programs for the civil, mechanical, electromechanical and architectural industry, create a competitive environment for contractors, educating the end-user, and helping them choose better suppliers & servicemen to build their dreams.

Timeline: From Concept to Reality

 

August 2019

The idea for E-Build Pakistan started from seeing a sore lack of digitalization in the construction industry all Over the world.

January 2020

After conducting research and connecting with like-minded individuals. design and development Of the EBP platform was begun.

August 2020

The platform will be ready for onboarding vendors, testing. and optimization by July. and will be launched during Pakistan’s independence day on August 14th.

October 2020

The EBP vision goes beyond business – we hope to build a thriving community. Provide relevant training. and conduct events to further Pakistan’s digital agenda.