The Government of Pakistan has sought a six-month extension in the construction amnesty scheme, from the International Monetary Fund (IMF). The construction amnesty scheme was launched by Prime Minister Imran Khan, in a bid to attract investments in the sector as well as to create employment for the unskilled and semi-skilled labor class of the country.
The amnesty scheme for the construction sector was announced in April 2019 to attract investments from real estate developers and construction companies. The scheme required builders and developers to get registered on a computer-based IRIS software which is powered by the Federal Board of Revenue, to widen the tax bracket.
The construction scheme has been a massive success so far, which is why the government plans to extend it. The scheme has helped the economy recover in terms of employment for the unskilled and semi-skilled labor class and generate economic activity in the industrial sector.
Under the scheme, about 3,851 buyers have shown interest in purchasing property by availing the tax incentives. The incentives include a fixed tax regime that allows for non-disclosure of income sources used for construction projects. This greatly motivated construction and real estate developers to invest more in the sector, compelling the government to request an extension of the amnesty scheme.
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