Karachi, February 3, 2025 – The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has extended its full support to the proposed tax package for the property sector, emphasizing its potential to stimulate housing and construction activities across the country.
In an official statement, FPCCI President Atif Ikram Sheikh on Monday lauded the government’s tax measures aimed at encouraging investment in real estate and construction. He noted that the existing 4 percent tax on property transactions had long been a significant barrier to development and commercial activities. The proposed reforms, he added, would create a more conducive environment for economic growth in the sector.
The FPCCI chief further highlighted that the real estate sector has remained stagnant for the past few years, necessitating urgent government intervention. He urged policymakers to introduce a comprehensive revival plan that would make homeownership more accessible and affordable for the general public.
To ensure the sector’s sustainable growth, FPCCI proposed that taxes on housing and real estate should be reduced to single-digit figures. Additionally, the government should introduce incentives to facilitate the acquisition of low-cost and affordable housing. Sheikh also recommended a complete tax exemption for first-time homebuyers, ensuring that every Pakistani has an opportunity to own a home without excessive financial burdens.
Sheikh emphasized the need for commercial banks to be actively encouraged to provide housing finance as a priority. He further suggested that the proposed housing package should include the exemption of overseas Pakistanis from withholding tax (WHT) to promote foreign investment in the sector. Additionally, he recommended allowing the construction of three-story residential buildings to accommodate the growing housing demand in a country with a population exceeding 250 million.
The FPCCI president stressed that the government must shift towards vertical development, encouraging high-rise residential projects equipped with modern civic amenities. He noted that well-planned vertical expansion would not only address housing shortages but also improve urban infrastructure efficiency, ensuring better living standards for the masses.
In conclusion, the FPCCI reaffirmed its commitment to working with the government to implement policies that foster real estate growth, generate employment opportunities, and contribute to the overall economic stability of Pakistan.