Islamabad, Feb 23: The Association of Builders and Developers (ABAD) North Region has expressed confidence that the federal government is poised to introduce a revival package for the construction sector, aimed at addressing key challenges and fostering long-term development. The anticipated measures are expected to provide much-needed relief to builders and developers, encouraging investment and revitalizing economic activity in the housing and real estate sectors.
ABAD North Chairman Sheikh Muhammad Nabeel lauded the efforts of Prime Minister Shehbaz Sharif, Finance Minister Muhammad Aurangzeb, and Housing Minister Riaz Hussain Pirzada in prioritizing the revival of Pakistan’s housing industry. He welcomed the government’s initiative to establish a dedicated task force, signaling a commitment to resolving sectoral issues and unlocking the industry’s potential.
Among ABAD’s core proposals are the reduction of Withholding Tax, the elimination of Federal Excise Duty (FED), and the introduction of Fixed-Rate Mortgages, which are seen as crucial steps to attract investment and create a more stable financial environment for developers and homebuyers alike.
The association also emphasized the critical role of banks in facilitating construction financing, urging financial institutions to ease lending terms and actively support the housing sector. Nabeel pointed out that Pakistan has the lowest home mortgage-to-GDP ratio in the region, highlighting an urgent need for policies that enhance financial accessibility and encourage participation in the formal real estate sector. He stressed that making home financing more affordable and accessible could significantly boost demand and contribute to economic expansion.
With Pakistan’s real estate sector holding an estimated Foreign Direct Investment (FDI) potential of $100 billion, ABAD believes that targeted reforms could open the doors for large-scale investment, creating jobs, stimulating allied industries, and strengthening investor confidence. The association remains hopeful that the government will swiftly implement the proposed reforms, recognizing the construction sector’s role as a key driver of economic growth and national development.
