The Board of Investment (BOI), under its senior leadership, arranged a seminar which was attended by representatives from FWO, Accord Hotels, and IHC Group of Companies. Federal Secretary BOI, Fareena Mazhar, encouraged foreign and domestic investors to explore investment options in the housing sector of Pakistan. Investment in this particular sector offers significant tax-based rebates, which makes it a lucrative option for builders, developers, and real estate investors. For instance, under the tax amendment Ordinance 2020, If eligible developers and builders invest in the housing sector, they will be exempted from withholding taxes.
In addition, under the State Bank of Pakistan’s (SBP) new policy on housing finance, banks have to meet mandatory targets to provide housing finance loans, especially to the lower-income demographic.
Accordingly, each bank would ensure that the financing for housing and construction of buildings would be at least 5% of their domestic private sector credit. With ample incentives from the government and the SBP, the housing sector of Pakistan is a lucrative investment avenue.
Besides housing, tourism is also a sector that can play a pivotal role in improving the real estate sector of Pakistan. Federal Secretary BOI called upon representatives of the hospitality and tourism industry to invest through joint ventures with local companies and administrative authorities. Recently, several international hotel chains like Accor hotels have shared plans to construct hotels in Islamabad and Lahore.