Iraq is planning to build houses for workers in the central Karbala governorate to ease a housing crisis, the official Arabic language newspaper Alsabah reported on Monday.

The Karbala government has allocated large plots of land for the project, which will be funded by local investors and the General Federation of Iraqi Workers, the paper said, quoting Karbala's governor Nassif Al-Khattabi.

"This project is intended to provide houses at affordable prices to local workers who need housing..it will be funded by the Federation and Iraqi investors," Khattabi said.

The houses will be constructed in various parts of Karbala in coordination with the Construction and Housing Ministry, he added, without mentioning project costs or the number of houses to be built.

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