ISLAMABAD, JAN 21 /DNA/ – Karim Aziz Malik, Chairman of Capital Office Islamabad, has outlined crucial measures for reviving Pakistan’s housing sector to prevent capital flight and unlock an investment potential worth $100 billion. He emphasized that a prompt response from the government could significantly contribute to the nation’s economic recovery and growth.

Malik stressed that the construction and housing sector serves as the backbone of Pakistan’s economy, with 72 industrial sectors directly connected to it. This sector generates substantial employment opportunities and plays a pivotal role in driving economic progress.

To fully unlock the potential of the housing sector, Malik proposed that the government reduce the withholding tax on property transactions to 1%, along with exempting the tax on the first property purchase to promote homeownership. He also recommended the removal of the 3% Federal Excise Duty (FED), which is unenforceable in provinces and places an undue burden on the sector.

Furthermore, Malik emphasized that the concept of “deemed income” has been a significant barrier to the sector’s growth and should be abolished. He called for the introduction of a 10-year fixed-rate mortgage product tied to the 10-year Pakistan Investment Bond (PIB) yield to make homeownership more accessible.

Lastly, he urged the government to encourage banks to prioritize construction as a key sector, which would stimulate broader economic development across the country.