Islamabad, Feb 3: Overseas Pakistanis are voicing their concerns about the current real estate policies in Islamabad, particularly the requirement to pay for plots in US dollars. This demand comes in light of the recent Capital Development Authority (CDA) balloting for Sector C-14, where overseas Pakistanis were given priority. Despite the positive outcome for these applicants, the stipulation that payments must be made in US dollars has led to frustration.
The applicants are now urging the federal government to reconsider this policy and allow payments in Pakistani Rupees (PKR), as well as to remove the withholding taxes and Federal Excise Duty (FED) imposed on property transactions.
The slow processing of US dollar remittances through official banking channels has compounded the problem. Many overseas Pakistanis have cited difficulties in accessing liquid funds and are burdened by additional banking fees, which can amount to over 2 percent per transaction.
For those who do manage to send money through these channels, the 4 percent withholding tax, alongside provincial taxes and stamp duties, further escalates the cost of the transaction.
Moreover, overseas buyers, who typically do not have taxable income in Pakistan, find it nearly impossible to claim tax refunds. This adds another layer of complexity and financial strain for these potential property buyers. In response to these issues, some applicants have taken legal action, appealing to the high court for intervention and relief. 
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The primary concern is the unfeasible requirement for dollar-based payments within just 30 days from January 15, 2025. This has led to a significant backlash from overseas Pakistanis who feel that the policy does not consider their unique financial challenges. Their calls for a shift to payments in PKR and the removal of withholding taxes are gaining traction, as many believe these changes would make property purchases more accessible to Pakistanis living abroad.
The government’s decision on this matter will significantly impact the real estate sector and the ability of overseas Pakistanis to invest in their homeland. For the policy to be more inclusive and supportive, a revision that accommodates the financial realities of expatriates is crucial.