By Commerce Reporter
LAHORE: Patron-in-Chie United Business Group (UBG) S. M. Tanveer has suggested measures for revival of the housing sector to prevent not only capital flight but also unlock a $100 billion investment potential.
An early government response, he said, would pave the way for robust economic recovery and growth.
According to him, the construction and housing sector are backbone of Pakistan’s economy. With 72 industrial sectors directly linked to this industry, they generate immense employment opportunities and drive economic growth.
To rejuvenate and unlock the full potential of Pakistan’s housing sector, the government should reduce withholding tax on property transactions to 1%, and declare the first property purchase tax-free to promote home ownership.
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Also, he said, the government should eliminate 3% FED, which is legally unenforceable in provinces and imposes an unnecessary burden on the sector.
Tanveer said the “deemed income” concept has significantly hindered growth in the housing sector and also requires immediate removal.
He said the government should launch a 10-year fixed-rate mortgage product tied to the 10-year PIB bond yield to make homeownership more affordable.
Also, he added, the government should encourage banks to classify construction as a priority sector, which would stimulate broader economic development.
