The construction and housing sector in Pakistan, a vital pillar of the national economy, is at a crossroads. Syed Mazhar Ali Nasir, Vice Chairman of the Southern Zone of the United Business Group (UBG), has urged the government to take immediate action to rejuvenate this critical industry. With over 70 allied industries tied to construction, the stakes are high, and the potential rewards are immense.
Why the Construction Sector Matters
The construction industry is a linchpin of Pakistan’s economic framework, directly impacting industries such as cement, iron, ceramics, and more. Its revival could unlock a staggering USD 100 billion investment potential, prevent capital flight, and generate employment for millions of skilled and unskilled workers. However, the sector is grappling with challenges that demand swift and decisive government intervention.
Key Measures Proposed for Revival
To overcome these challenges, VC Nasir has proposed several strategic measures aimed at revitalising the construction and housing sector:
- Lowering Taxes on Construction
Reducing tax burdens on the construction sector would encourage investment and spur growth in the housing market. - Tax-Free First Property Purchase
Declaring the first property purchase tax-free would incentivise homeownership and stimulate market activity. - Abolishing the 3% FED
Removing the Federal Excise Duty (FED), deemed legally unenforceable in provinces, would eliminate a significant barrier to sector growth. - Prioritising Construction in Banking Policies
Encouraging banks to classify construction as a priority sector could channel much-needed financing, driving economic development. - Eliminating Unfavourable Policies
Addressing outdated concepts that hinder growth in the housing sector would create a more investment-friendly climate. - Introducing Long-Term Fixed-Rate Mortgages
Launching a 10-year fixed-rate mortgage tied to the PIB bond yield would make homeownership more accessible for the average Pakistani.
The Ripple Effect of Revitalisation
Implementing these measures would have far-reaching benefits. The construction sector could become a key driver of economic growth, fostering job creation, attracting foreign investment, and stimulating ancillary industries. Moreover, the increased economic activity would boost government revenues and improve the overall business environment in Pakistan.
A Call to Action
The government’s proactive support is essential to unlocking the construction sector’s full potential. By addressing these challenges, Pakistan can pave the way for robust economic development and position the housing sector as a cornerstone of national prosperity.
For more insights and updates on Pakistan’s real estate and economic developments, stay tuned to PropertiesPakistan.com, your trusted source for all things property-related.
