🏗️ Real Estate Leaders Urge Tax Holidays and Regulatory Reforms to Attract Global Investment
ISLAMABAD – Prominent players in Pakistan’s real estate sector have appealed to the government for bold reforms aimed at boosting investor confidence and attracting international capital. Their demands include a decade-long tax exemption, a reliable framework for profit repatriation, and the creation of a central regulatory authority under the Special Investment Facilitation Council (SIFC).
In a candid briefing with select journalists, Tarek Hamdy, CEO of EIGHTEEN Housing, highlighted key barriers holding back the real estate sector and proposed comprehensive solutions to unlock its growth potential.
📈 A Vision for Investment-Led Development
Hamdy praised the SIFC’s efforts to simplify investment protocols and support foreign participation in Pakistan’s economy. However, he urged further strengthening of the council by integrating domain experts such as economists, legal advisors, and industry professionals. This, he said, would ensure smarter, more balanced policymaking.
He put forward a case for a 10-year tax exemption exclusively for foreign direct investment (FDI) in the real estate domain, positioning it as a critical step toward stimulating construction activity and fostering urban renewal.
💵 Profit Repatriation: A Non-Negotiable for Global Investors
A major part of Hamdy’s proposal centered around giving investors a clear and enforceable mechanism to repatriate profits. Without the assurance of return on capital, he argued, Pakistan risks losing out on vital international investment.
“How can we expect overseas investors to bring money into Pakistan if there’s no system for taking profits back?” he questioned, stressing that capital flow is driven by trust and transparency.
⚖️ Tackling Over-Taxation and Hostile Oversight
Hamdy raised serious concerns over the excessive taxation burden on real estate developers, claiming it acts as a deterrent for both local and international investors. “The equation is simple: when taxes go up, sales go down,” he said, calling for more investor-friendly policies.
He didn’t mince words about some revenue authorities using coercive tactics such as surprise inspections and unfounded pressure on developers. Such actions, he noted, create an atmosphere of fear rather than progress.
“Regulators should support and facilitate—not intimidate,” he remarked.
🧾 Cutting Red Tape and Ensuring Legal Clarity
Hamdy criticized bureaucratic inefficiencies and overlapping regulations among different approval bodies, which often confuse investors and stall development projects. He advocated for a one-window approval system spearheaded by the Board of Investment (BoI) to streamline real estate processes and minimize delays.
🚨 Curbing the Menace of Illegal Housing Societies
One of the gravest threats to Pakistan’s property sector, according to Hamdy, is the uncontrolled spread of unauthorized housing schemes. These unregulated projects often operate without any official clearances, leaving thousands—particularly overseas Pakistanis—vulnerable to fraud.
He proposed launching a nationwide digital registry that lists all legal housing societies, including their NOCs, approval status, and development milestones. This publicly accessible portal would allow investors to verify project legitimacy and safeguard their investments.
❓FAQs for Pakistani Readers
1. What is the real estate sector asking from the government?
Real estate investors are seeking a 10-year tax break, the ability to repatriate profits, and the creation of a regulatory body to streamline the sector.
2. Why is a regulatory authority important for real estate in Pakistan?
A central regulatory body would oversee housing projects, eliminate illegal schemes, and restore investor confidence—especially among overseas Pakistanis.
3. What is the significance of profit repatriation for foreign investors?
Without a clear mechanism to return profits, foreign investors may avoid putting money into Pakistan’s real estate market, fearing they won’t be able to withdraw gains.
4. How does over-taxation affect the property market?
Excessive taxes discourage development, reduce sales, and push potential investors away due to lower profit margins.
5. What are the dangers of unapproved housing schemes?
These illegal projects often scam investors by promising developments that are either fraudulent or never completed. A national registry could prevent such incidents.
