Tk1,000cr fund for civil servants' housing

In their fourth year of service, public officials will be eligible for the loan to buy a flat with facilities of soft loan and installments, officials said. By using the facility, they can own the flats by the end of their career. SM Arif-Ur-Rahman, additional secretary (Development) of Public Works Ministry, told the Dhaka Tribune yesterday that the project was a brainchild of Prime Minister Sheikh Hasina. He said that if public servants can own flats for their service to the government, it may reduce corruption in public administration and encourage the meritorious to aim at public service careers. The detailed project plan (DPP) for this revolving fund has already been sent to the Planning Commission for approval as a project for the construction of flats and for giving loans. The public works secretary recently made a presentation at the Prime Minister's Office in this regard, he said. In the PMO monitoring meeting, Public Works Secretary Md Shahid Ullah Khandaker said: “Our flat purchase loan programme will be more easy and affordable for civil servants compared to the Bangladesh Bank loan scheme for government employees.” Minutes of the meeting show that the ministry plans to approve the DPP of flats for civil servants from the Architecture Directorate within a month before it is placed at the Planning Commission. Representatives of the National Housing Authority also made a presentation at the PMO about available flats under construction in Dhaka, Chittagong and Khulna, according to the minutes. According to the DPP, three categories of flats will be constructed in Dhaka and outside the mega city. The areas of the flats are 850, 1250 and 1550 square feet. Per square cost will be determined when the Planning Commission approves the project. The loan interest rate will be below the bank rate which is now 8%. Towidul Islam, an official of the secretariat, said: “Around 70% of our salary is spent in rent private houses in the Dhaka city, if we do not get government housing facilities.” Despite the 50% to 65% raise in house rent allowance in the last pay scale announcement, the problem of housing for civil servants is far from over, he said. “If we can purchase flats with cheap funds, it will be a great financial solution for us,” he added. Usually officials get 55% of basic salary as rent while the government staff get 65% under the new pay scale and only 8% of total government workforce gets housing facilities.