Govt urged to take measures to revive construction & housing sector

KARACHI: Syed Mazhar Ali Nasir, Vice Chairman of the Southern Zone of United Business Group (UBG), has urged the government to take swift measures to revive the construction and housing sector.

This revival is crucial not only to prevent capital flight but also to unlock a staggering $100 billion investment potential and support over 70 industrial sectors linked to construction.

The construction sector, considered the backbone of Pakistan’s economy, is facing numerous challenges. However, with the right support, it can play a vital role in robust economic growth.

Reviving this sector will also have a positive impact on 70 ancillary industries, including cement, iron, ceramics, and others, leading to increased economic activity and job opportunities for both skilled and unskilled labourers.

To achieve this, Syed Mazhar Ali Nasir emphasized the need to reduce withholding tax on property transactions to encourage investment. He also suggested that the government should declare the first property purchase tax-free to promote home ownership. Furthermore, he called for the elimination of the 3% Federal Excise Duty (FED), which is legally unenforceable in provinces and hinders sector growth.

Additionally, Syed Mazhar Ali Nasir recommended that banks should be encouraged to classify construction as a priority sector to stimulate broader economic development. He also stressed the need to remove the deemed income concept, which has significantly hindered growth in the housing sector. Introducing a 10-year fixed-rate mortgage product tied to the 10-year PIB bond yield would also make homeownership more affordable.

By taking these steps, the government can revitalize the construction and housing sector, leading to increased economic growth, job creation, and investment opportunities and it will also help government to uplift the economy and foreign investment as well.

Copyright Business Recorder, 2025