In a seminar held by The Board of Investment (BOI) in Dubai, on “Construction & Housing for Sustainable Development” the secretary of the BOI, Fareena Mazhar strongly encouraged the investors to explore the Housing Sector of Pakistan. The federal secretary also told that this sector has got a tremendous future prospect as there exists an annual demand of about 0.7 million housing units in the country of which only half of the demand is being met currently. She also shared that the housing sector of Pakistan also offers special tax rebates. Same like this situation, the State Bank Of Pakistan (SBP) also motivated Commercial banks for Speedy House Loan Approvals for people before.
While encouraging the investors to invest in the Real Estate sector she added that the current government is giving special incentives to the investors with regard to tax payments and under tax law amendment 2020, the eligible investors get tremendous tax relief and also enjoy facilitation of project approval through one window operations introduced by Naya Pakistan Housing and Development Authority (NAPHDA). She also added that the central bank has already given mandatory targets to commercial banks to ensure that the financing to the construction sector should be at least five percent of their domestic private sector credit by Dec. 2021.
The secretary further added there would be no withholding tax on the purchase of building materials, and any tax payable on the income, profits, and gains of projects of Low-Cost Housing In Pakistan under the NAPHDA or EHSAAS program would be reduced by 90%. The secretary added that under the dynamic and visionary leadership of Prime Minister Imran Khan many bold steps have been taken to lead the country to an economic boom. She also told that the economic uplift of the country is the top priority of the government and the current reforms introduced by the government have significantly improved all sectors of the economy despite there being many challenges on economic and geopolitical fronts. She also mentioned the 22 Special Economic Zones (SEZs), four of which are ready for investment.
Representatives from FWO, Major General Kamal Azfar, Director General, Frontier Works Organization (FWO) highlighted joint venture opportunities in roads and motorways in Pakistan. The representatives of Accor Hotels and IHC Group of Companies also spoke on the occasion. Jean-Baptiste Recher, Vice President –Development Accor Hotels UAE, showed his interest in the construction of hotels in Islamabad and Lahore. Noman Qamar, President & CEO, IHS Group of companies also showed interest in investing in tourism in Karachi, Lahore, Islamabad, and northern areas of Pakistan.