Chairman of the Association of Builders and Developers of Pakistan (ABAD) North, S. M. Nabeel, has expressed gratitude to Prime Minister Shehbaz Sharif, Federal Finance Minister Muhammad Aurangzeb, and Federal Minister for Housing Riaz Hussain Pirzada for taking significant steps toward revitalizing Pakistan’s housing sector. He particularly appreciated the formation of a dedicated task force to address challenges in the sector and promote sustainable development.
S. M. Nabeel praised the Prime Minister’s leadership and the proactive efforts of his team in strengthening Pakistan’s economy. He noted the positive response from the Federal Finance Minister and the Housing Minister to ABAD’s proposals during the first meeting of the task force.
ABAD has presented a comprehensive proposal identifying critical issues in the real estate sector and recommending solutions to unlock its potential. Key proposals include:
- Reducing Withholding Tax: A reduction to 1% on property transactions, with the first property purchase declared tax-free to promote homeownership.
- Removing Federal Excise Duty (FED): The removal of the 3% FED, which is legally unenforceable in provinces and detrimental to the sector.
- Introducing Fixed-Rate Mortgages: A 10-year fixed mortgage product linked to the 10-year PIB bond yield to enable affordable homeownership.
- Preventing Capital Flight: Measures to retain investments within the country.
- Prioritizing Construction Financing: Encouraging banks to designate construction as a priority sector to stimulate economic growth.
Nabeel emphasized the importance of balanced policies, advocating for measures that penalize non-filers while encouraging investment in the real estate sector. He highlighted that fair policies could unlock a $100 billion investment potential, driving economic recovery and growth.
“Pakistan’s real estate sector has immense potential to contribute to economic development with the right support and policies,” Nabeel said. He expressed hope that the government would continue its collaboration with ABAD to foster a conducive environment for growth and investment in the housing sector.
The Chairman concluded by reaffirming ABAD’s commitment to working with the government to achieve sustainable development in Pakistan’s housing industry.
Also Read: Spotify partners with JazzCash to localize Premium Subscription Payments in Pakistan
