LAHORE: The Association of Builders and Developers of Pakistan (ABAD) presented a set of proposals for revival of housing sector and sought removal of 3 percent Federal Excise Duty (FED).
The Association also sought introduction of a 10-year fixed mortgage product linked to the 10-year PIB bond yield to enable affordable homeownership.
Chairman ABAD (North) SM Nabeel presented these proposals at the first meeting of the task force constituted by the federal government to address challenges in the sector and promote sustainable development.
SM Nabeel while talking to the Business Recorder on Saturday also 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 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.
The ABAD presented a comprehensive proposal identifying critical issues in the real estate sector and recommending solutions to unlock its potential. Key proposals include a reduction of withholding tax to 1% on property transactions, with the first property purchase declared tax-free to promote homeownership.
While mentioning about the capital flight, he said, measures are required to retain investments within the country. He said the ABAD has also proposed the government to encourage 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 an environment conducive to 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.
Copyright Business Recorder, 2025
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