Islamabad, Feb 6: The federal government has introduced a series of policy proposals aimed at revitalizing the housing sector, with a focus on generating employment, streamlining property transactions, and attracting greater investment. The Prime Minister’s Task Force for Development of the Housing Sector has been working on these recommendations, which are expected to provide much-needed relief to buyers and sellers while stimulating economic growth in the real estate industry.
One of the major proposals under consideration is allowing non-filers to purchase properties valued at up to Rs. 10 million, a move aimed at expanding market participation. In addition, the government is actively working on reducing taxes associated with property transactions to encourage more activity in the sector.
As part of these proposed tax cuts, the tax levied under Section 236C on property sales may be reduced from 3 percent to 1.5 percent. In certain cases, the tax rate could drop from 4 percent to 2 percent, providing significant relief to sellers. Similarly, the tax under Section 236K on property purchases is proposed to be slashed from 3 percent to just 0.5 percent. Currently, cumulative property transaction taxes range between 11 to 14 percent, making real estate deals costly and less attractive. The proposed reforms are expected to lower these rates considerably, making property transactions more affordable for buyers and investors alike.
For overseas Pakistanis, the government is working on a proposal to simplify property purchases by introducing an online registration system through the National Database and Registration Authority (NADRA). This initiative aims to facilitate expatriates looking to invest in real estate back home without facing bureaucratic hurdles.
Another key recommendation from the task force is allowing filers to include properties worth up to Rs. 50 million in their wealth statements. This measure is expected to provide clarity in asset declarations while offering more flexibility to real estate investors.
With these proposals, the government hopes to inject new life into the housing sector, making property ownership more accessible while encouraging local and foreign investment. If implemented, these measures could significantly boost real estate activity, create jobs, and contribute to overall economic growth.
