Government hints at new reforms to increase investment in real estate

Federal Finance Minister Senator Muhammad Aurangzeb chaired a virtual meeting of the Focus Group on the Promotion of Real Estate Investment Trusts (REITs) and Development of Capital Markets, which was attended by prominent figures from the business world and key representatives of the public and private sectors, including Arif Habib, Nadeem Riyaz and Ali Jameel.

The meeting emphasized the need to make the real estate sector in Pakistan organized, transparent and more attractive for investment. In this regard, detailed discussions were held on improving the tax system, simplifying the procedures and increasing the participation of small investors, especially for the promotion of REITs. The participants acknowledged that Pakistan’s REIT market has made initial progress but there is still considerable scope for growth.

The Finance Minister said that REITs are a transparent means of channeling real estate investment into productive sectors of the economy and they help in promoting the documentation system as well as making the construction sector a part of the regular economy. He directed the SECP, REIT issuers and the Tax Policy Office to conduct a detailed review of taxation and regulatory issues and submit actionable proposals.

The meeting also agreed to bring Pakistan’s REIT framework in line with international standards, but emphasized on keeping it simple and workable. The government expressed its commitment to provide a transparent and investor-friendly environment that would help in sustainable economic growth.