Karachi Today, 23 January, 2025 : Muhammad Hanif Gohar, Former Chairman-ABAD, Former Senior Vice President FPCCI and leader of the United Business Group (UBG), has welcomed the government’s decision to allow non-filers to purchase properties worth up to Rs 10 million. This move is expected to unlock the massive investment potential of $100 billion in the real sector and construction sector.
Gohar praised the government’s decision, saying it reflects their determination to promote economic development and create opportunities for all sections of society. By enabling non-filers to invest in properties, business activity in the real estate and construction sector will increase, creating employment opportunities and boosting over 100 related industries which are essential for our economy.
Previously, the ban on non-filers from purchasing properties had sparked controversy, with stakeholders arguing that it hindered investment and deprived many from participating in the real estate sector. This led to local capital flowing out to countries like Dubai.
Gohar expects the new policy to attract significant investment in the real estate sector, resulting in increased revenue for the government through related taxes and fees. He emphasized that the construction and housing sector is the backbone of Pakistan’s economy, supporting 100 industrial sectors and driving employment and economic growth.
To fully capitalize on Pakistan’s housing sector, Gohar stressed the need for further reforms. He suggested that reducing the withholding tax on property purchases and sales to 1% would encourage investment. In addition, exempting the purchase of first properties from tax would promote home ownership. Gohar also called for the abolition of the 3% Federal Excise Duty (FED), which cannot be legally enforced in provinces and burdens the sector.
Furthermore, Gohar proposed the introduction of a 10-year fixed-rate mortgage product linked to a 10-year PIB bond to make home ownership more affordable. He also emphasized the importance of encouraging banks to prioritize the construction sector, which would promote large-scale economic development and also attract foreign investment.
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