ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has been informed that real estate is the country’s “mother industry”, with a Rs 100 trillion asset class and deep economic linkages, but facing a major challenge due to an unfavourable tax regime.
The SECP issued a white paper on Friday regarding the First International Capital Market Conference (ICMC).
In his presentation on Pakistan’s Real Estate Investment Trust (REIT) sector, CEO Arif Habib Dolmen REIT Muhammad Ejaz positioned real estate as the country’s “mother industry”, a Rs100 trillion asset class with deep economic linkages but historically under-leveraged due to informality, limited investor access, and weak integration with the financial system. He emphasised that REITs offer a disciplined, regulated structure to unlock this latent potential and channel quality capital into transparent, professionally managed real estate projects.
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The presentation outlined how REITs work in Pakistan, detailing a sophisticated institutional framework involving trustees, REIT Management Companies (RMCs), property managers, development advisors, valuers, auditors, Shariah advisors, rating agencies, and regulators.
Ejaz presented a visual workflow showing how investors participate through the PSX, while trustees safeguard assets and RMCs manage operations and income distribution.
Pakistan’s REIT Regulations, 2022 define REITs as closed-end trust schemes with robust governance, disclosure, and valuation requirements. The industry now comprises of 34 licensed RMCs and 25 REIT schemes with combined assets of PKR 208.7 billion, including landmark projects such as Dolmen City REIT, the region’s first listed REIT, and recent developmental and hybrid REITs like Globe Residency REIT, TPL REIT Fund I, and Image REIT.
Despite strong momentum, the presentation highlighted persistent challenges, including an unfavourable tax regime, dominance of informal players, regulatory fragmentation, limited access to formal finance, and low investor awareness. However, Ejaz also outlined significant opportunities in the shape of SECP’s focus on capital market reforms, demand for civic infrastructure, institutional investor interest, and the ability of Shariah-aligned REITs to attract wider participation. With a growing pipeline, the sector is positioned to become a major pillar of Pakistan’s investment and urban development landscape, SECP added.
Copyright Business Recorder, 2026
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