Call for reforms to save construction, housing industries

LAHORE: In a strongly worded press conference held at the Regional Office of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in Lahore, senior business leaders have called on the government to immediately implement deep fiscal reforms to save the construction and housing industries from complete collapse.

FPCCI Regional Chairman and Vice President Zaki Aijaz, along with United Business Group (UBG) Patron-in-Chief SM Tanveer, demanded that the government abolish Sections 236C and 236K and reduce the applicable tax rate to just one percent in order to revive the ailing construction sector. They also called for the elimination of all filer categories and the complete abolition of Sections 7E and 7F, as well as advance tax, arguing that these provisions have placed an unbearable burden on property owners, developers, and investors alike.

The business leaders welcomed the Prime Minister of Pakistan’s anticipated announcement of a special package for the construction sector, describing it as an encouraging step in the right direction. However, they stressed that such gestures alone would not be sufficient unless backed by a comprehensive and actionable fiscal strategy.

Describing the construction and housing sector as the “backbone of the national economy” both leaders emphasized that immediate financial reforms are essential to open the doors of investment and to prevent the outflow of capital abroad. They warned that the mere elimination of the Federal Excise Duty (FED) would not be enough to bring about meaningful economic recovery and that a far more ambitious approach is required.

They presented a comprehensive strategy centered on enabling the construction of 500,000 housing units annually a move they said would reactivate 72 interconnected industries and place Pakistan back on the path of becoming an “Asian Tiger”.

The leaders also denounced the one percent deemed income tax imposed on non-yielding properties as deeply unjust, demanding its immediate removal to ease the financial burden on property owners and developers. They further called for the complete abolition of advance tax on property sellers, stating that such a measure would make property transfers easier, faster, and more transparent while reducing financial barriers for investors.

On the matter of Section 236K, they proposed that the maximum tax rate under this section be capped at 0.5 percent a step they said would boost buying and selling activity and help bring the real estate market into the documented economy.

Copyright Business Recorder, 2026