KARACHI: Pakistan’s real estate sector will soon enjoy status of an Industry as the federal government has decided to recognize the investment potential of realty in the country.
Mian Abdul Mannan, Chairman of Standing Committee of National Assembly on Parliamentary Affairs & Finance while addressing at the oath taking ceremony of newly elected office bearers of Defence & Clifton Association of Real Estate Agents (DEFCLAREA) here informed the participants that the announcement to grant industrial status will be made in the upcoming budget by Federal Finance Minister Ishaq Dar. Mannan said that with industrial status the real estate sector will be more attractive for foreign investment and players will get incentives at par with other industries. “We will sort out the issue of property valuation and amnesty scheme can be announced if all stakeholders agree”, he said adding raids on agency and houses of businessmen wont be allowed.
Talking about the law and order situation of Karachi, he said that the city has been transmuted from ‘city of blood’ to the ‘city of lights’. “Government of Mian Nawaz Sharif took bold step to get the city rid of menace of terrorism and bloodshed. The government is determined to restore the peace of city like other parts of the country and for this purpose the Rangers will continue to stay in the city, even for 90 years if needed”, he stated.
The resolve of the government is that no ‘organized crimes’ will be allowed to prosper again in the city, he added. He also highlighted the economic progress of his government saying that all local and external factors point positive finger at the achievements of the incumbent government. “International rating agencies have changed their stance on Pakistan’s economic outlook from negative to stable and now positive”, he added.
Earlier, newly elected President of DECLAREA for year 2017-19, Raja Mazhar Hussain, demanded that the real estate sector be give the status of industry as major chunk of foreign investment comes in the sector in the form of remittances. “Some 72 industries are associated with the real estate sector which also contributes to the national exchequer to large extent”, Hussain added.
Measures such as reduction of taxes and exemption of income tax upto Rs 6 million will increase the investment to over 50 percent in the real estate sector and the inflow of remittances will also increase to large extent, he said adding that the current burden of taxes has reduced the purchasing power of the masses.
Johar Iqbal, Secretary General of DECLAREA, said that by availing the status of industry the real estate investors, developers and agents will be able to get licenses and their dealings will have legal backing. He called for reduction of taxes upto 50 percent which would in return increase the number of transactions resulting in the revenue increase.
Aqeel Karim Dhedhi, Chairman of AKD Group, stressed for creating awareness about the full potential of the real estate sector. “Government can achieve revenue targets from the real estate sector which needs to be fully explored”, he observed. Arif Habib, Chairman Arif Habib Group, said that Pakistan two major sectors are Agriculture and Real Estate sectors which are also major avenues for investment. He called for looking beyond only plots business with prioritizing development as well.
Chairman Pak-UAE Business Council, Ahmed Abubakar Shaikhani, especially came from Dubai to attend the ceremony.
He said that there are many opportunities for business community of both countries and DECLAREA enjoys trust of overseas investors who wish to do more investment in real estate sector in Pakistan. “Pakistan must achieve economic prosperity and will also work jointly with DEFCLAREA to grow this sector,” he added.
The oath taking ceremony was attended by large number of real estate agents and developers. Besides, representatives of FPCCI,KCCI and other associations were also present on the occasion.