Karachi, May 14, 2026: Patron-in-Chief of the United Business Group (UBG), SM Tanveer said that excessive taxes imposed by the government have forced the closure of more than 80 industries linked to the housing and construction sectors in Pakistan. He stated that distinctions between filers and non-filers, along with Section 236C, 7E, and other taxes, have severely damaged the construction industry and destroyed the investment climate.
He expressed these views while addressing a meeting during a visit to Abad House led by UBG President Zubair F Tufail. The delegation also included former FPCCI Senior Vice President and UBG Southern Region Secretary General Muhammad Hanif Gohar, along with other UBG leaders.
SM Tanveer said that businesses cannot thrive merely by keeping money in banks, emphasizing that investment and industrial activity are essential for economic growth. He added that UBG has established an economic think tank to propose recommendations for the upcoming federal budget.
He stated that the growth of the construction sector is effectively the growth of the economy because more than 70 other industries are connected to it. He further said that globally, the average property tax is around four percent, but in Pakistan, the nation was deceived under the guise of advance taxes. He questioned why the housing sector was penalized due to rising oil prices caused by the Russia-Ukraine war.
ABAD Chairman Mohammed Hassan Bakhshi is addressing a ceremony held at ABAD House, while ABAD Senior Vice Chairman Syed Afzal Hameed, Vice Chairman Tariq Aziz, Chairman Southern Region Ahmed Owais Thanvi, UBG President Zubair Tufail, Patron-in-Chief S. M. Tanveer, and Southern Region Secretary General Muhammad Hanif Gohar are present on the stage.
SM Tanveer expressed hope that Section 236C, 7E, and other controversial taxes would be abolished in the upcoming budget. He noted that the Federal Excise Duty (FED) had already been withdrawn and that capital flight to Dubai had also slowed down, which he described as a positive sign for the national economy.
He said he remained optimistic that conditions would improve after the budget, adding that he sees strong economic growth ahead for Pakistan, especially considering Karachi’s enormous potential.
He further remarked that UBG needs fresh thinking and that bringing the younger generation forward is the need of the hour. Referring to a recent court decision, he welcomed the lifting of restrictions on converting residential plots into commercial properties, saying it would help restore investor confidence.
Praising Asim Munir for his interest in economic matters, SM Tanveer said that after helping prevent conflict between Iran and the United States, the Field Marshal would now focus fully on Pakistan’s economic development.
Speaking on the occasion, Chairman of ABAD, Muhammad Hassan Bakhshi, said that improving the judicial system in the country is essential. He demanded laws ensuring that court cases are resolved within three months.
He said that significant improvement had been observed after appointing a private-sector chairman at the Lahore Development Authority, and similarly, the head of the Karachi Development Authority should also be selected from the private sector.
Hassan Bakhshi revealed that he had also written a letter to the Field Marshal, asking him to assess whether governance and performance in Karachi had improved. He added that if there are shortcomings within the bureaucracy, politicians, or their own ranks, they are ready for accountability.
He further stated that some institutions of the Sindh government should be handed over to the private sector because business conditions in Punjab are much better than in Sindh, while Karachi feels isolated.
He concluded by saying that ABAD wants to serve the public and the construction sector without seeking any special favors. At the end of the ceremony, tribute was also paid to SM Tanveer for his services to the business community.
