Hike in Real Estate Incorporation Reported SECP

KARACHI: The steps taken by the government in the form of Naya Pakistan Housing and other incentives like amnesty scheme and tax reduction in the real estate sector seem to have gone down well with the investors and an unprecedented upsurge in the registration of companies in this sector has been noted. The number of newly registered land developers has risen by 132 per cent in the fiscal year 2020-21.

According to the information shared by the Security and Exchange Commission of Pakistan, the total number of companies incorporated last Year was 1794 which is 2.3 times more than the ones registered the previous year. The relief provided by the government in amnesty scheme, the decrease in taxes , a significant rise in fund allocation in the sector and decreased capital gain tax on sale of property is believed to be the reason behind the investor’s interest in the real estate and construction sector. Last year the PM announced a tax amnesty scheme to encourage the masses to invest in construction sector without having to disclose the source of earning of the wealth to the revenue collectors.

Initially the option was given for 10 months but later this period was extended for further six months. Thousands of people claimed amnesty on funds amounting to almost Rs 500 billion. The growth of registration was also seen in Information Technology and Trading sectors but the unprecedented rate of increase in real estate and construction sector has been extremely unusual. The increasing trend in investment in the real estate and construction sector will not only contribute a great deal to the national exchequer but also help the government in its vision of providing the lower segment of society with the basic need of housing. This will also assist the government in fulfilling their commitments with the public. The rise in investment in the sector will also gear up hundreds of industries connected directly or indirectly with construction sector proving to be a real boost for the economy.