At a recent seminar in Lahore, Kashif Anwar, President of the Lahore Chamber of Commerce and Industry (LCCI), emphasized the need of Real Estate Policy reforms and called for government support through friendly policies and a softer tax regime. The seminar, titled “Real Estate Business, Taxes, Potential and Way Forward,” highlighted the need for strategic reforms to attract investments from locals, expatriates, and overseas Pakistanis and encouraging Pakistan’s Real Estate Sector to recover from crisis.
During his address, Kashif Anwar pointed out the sector’s extensive impact, noting that real estate supports 72 industries and stands as the second-largest employer after agriculture in Pakistan. He argued that excessive taxation threatens business sustainability and urged for policies that encourage growth rather than closures. He also stressed the importance of non-intrusive documentation for property buyers using legitimate funds.
Other speakers, including Dr. Kamran Fazal and Major Muhammad Rafiq Hasrat (retd), echoed the need for tax adjustments, particularly criticizing the rise in advance tax rates which they believe is reducing government revenues and dampening transaction volumes. They called for tax relief for overseas Pakistanis and incentives for those investing in the construction sector to stimulate economic activity.
The seminar concluded with a strong consensus on several key recommendations for policy makers: the introduction of a fixed tax system to replace the myriad of existing taxes, the establishment of tax-free zones for foreign investors, and the activation of the Real Estate Trade Regulatory Authority. Participants also advocated for a declaration scheme for undeclared capital and tighter controls on fraudulent housing schemes.
By implementing these measures, LCCI believes that the real estate sector can significantly contribute to Pakistan’s economic stability and growth, ultimately benefiting a wide array of associated industries and improving employment rates across the country.
