Karachi, Pakistan – October 17, 2024:The Chairman of the Association of Builders and Developers of Pakistan (ABAD) has urged the government to establish a predictable and consistent tax regime to stimulate investment and promote growth in the country’s construction industry. In his recent address, the Chairman highlighted the adverse impact of frequent changes in tax policies on the real estate and construction sectors, which are vital to Pakistan’s economic development.
The Chairman emphasized that an unpredictable tax environment creates uncertainty for developers and investors, stalling projects and discouraging long-term planning. He called for a stable tax framework that allows builders to make informed decisions and confidently invest in large-scale projects.
“The construction industry is a major driver of Pakistan’s economy, contributing significantly to employment and infrastructure development. However, the lack of a consistent tax policy is one of the biggest hurdles facing the industry. Frequent changes in tax laws disrupt business operations, delay projects, and discourage local and foreign investors,” the Chairman stated.
He further explained that the constructio8n sector requires long-term planning, and a steady tax regime would encourage more investment in housing, commercial, and infrastructure projects. A predictable tax policy would also promote transparency and fairness, allowing businesses to operate without the fear of sudden financial shocks.
“Builders need to know what to expect when it comes to taxes, so they can plan projects with confidence. A consistent tax policy will not only help developers but will also attract foreign direct investment into the country. This is essential for boosting the overall economy,” he added.
The Chairman also pointed out that the construction sector has enormous potential to drive economic growth if the right policies are put in place. He urged the government to engage with industry stakeholders, like ABAD, to develop tax policies that encourage investment, create jobs, and contribute to the country’s long-term prosperity.
He highlighted that a stable tax regime would also help address Pakistan’s growing housing demand, as builders would be more likely to invest in affordable housing projects if they could rely on predictable costs and taxes. This would contribute to alleviating the housing shortage in urban areas and ensure sustainable urban development.
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