Islamabad,Zubair Kasuri: Prominent figures in Pakistan’s construction and real estate sector are calling on Prime Minister Shehbaz Sharif to introduce a “Prime Minister’s Housing Package” and implement urgent tax reforms to stimulate the country’s economy. Led by Muhammad Ahsan Malik, an economic analyst and real estate expert, the group argues that while the recent IMF deal has stabilized the rupee, further action is needed to truly revitalize the economy.
Malik, in an open letter addressed to the Prime Minister, emphasizes the potential of the housing and construction sector to boost over 50 related industries and generate significant employment opportunities. He criticizes the current tax policies, which he claims are hindering investment and development in the sector.
“Why not collect less tax from more people by changing the method of collecting more tax from fewer people?” Malik questions in his appeal. He points to high taxes on essential construction materials like steel and cement as major impediments to growth.
The group highlights the stark difference in cement prices for domestic consumption versus export, with a 50kg bag costing PKR 1420 domestically due to a 42% tax burden, compared to an export price of approximately PKR 650. They also call for a reduction in transaction and transfer costs for real estate and easier access to loans with single-digit interest rates.
Malik and his colleagues have requested a meeting with the Prime Minister and Finance Minister to discuss these issues and collaborate on a comprehensive action plan for the housing and construction sector. They believe that a targeted housing package and tax reforms can be the key to unlocking the true potential of this vital sector and driving economic growth in Pakistan.
This appeal comes at a time when the construction industry is facing numerous challenges, including rising material costs, high inflation, and a slowdown in economic activity. Whether the government will heed this call for action remains to be seen.
