To facilitate the 22,000 registered Designated Non-Financial Business and Professions (DNFBPs) in the real estate sector, the Federal Board of Revenue (FBR) has defined the reporting requirements for brokers, developers, builders and DNFBPs. The process was simplified for DNFBPs who found it hard to complete a four-page data sheet with dozens of questions related to the whereabouts of the sellers and buyers of a single property. This reform was necessary as it was in line with the recommendations given in the 27-point action plan. Reform details will be shared with the FATF as it will add to Pakistan’s efforts towards complying with the FATF’s recommendation.
According to the decision made by the National Coordination Committee, the FBR will define the reporting, documentation, and role of these DNFBPs. Currently, 500,000 property dealers are operating in Pakistan, with only 22,000 registered DNFBPs. With this reform in the reporting policy, the government aims to bring the 500,000 property dealers under FBR either as DNFBPs or registered under the existing DNFBPs.
The ultimate objective of the policy is to enable only registered dealers and developers to do business in the market. By defining and clarifying the record-keeping business for builders and developers, rules and regulations are now clear for proper documentation.
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