ISLAMABAD:Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb on Saturday chaired a virtual meeting of the Focus Group to discuss measures for incentivizing and facilitating the growth of Real Estate Investment Trusts (REITs) and strengthening their role in economic activity and capital market development.
The meeting brought together key stakeholders from the public and private sectors to deliberate on measures aimed at strengthening the REIT framework and enhancing its contribution to economic activity and capital market development.
On the occasion, the minister appreciated the active engagement of stakeholders and acknowledged the constructive role of the business community, financial institutions, and market participants in contributing to policy dialogue.
He underscored the importance of continued and structured consultation to ensure that reform efforts remain responsive to market needs, grounded in practical considerations, and aligned with broader economic objectives.
The discussion covered key areas central to the growth and scalability of the REIT sector. Participants deliberated on refining the taxation framework, streamlining processes to facilitate REIT issuers, and strengthening the overall market ecosystem to enhance investor participation, particularly from retail segments. Emphasis was placed on maintaining a balanced, predictable, and investment-friendly enabling environment.
The participants noted that while the REIT market in Pakistan has made initial progress, significant potential remains to deepen its reach through targeted policy measures and improved coordination. Addressing procedural inefficiencies, ensuring clarity in regulatory requirements, and fostering alignment among stakeholders were identified as critical to unlocking this potential.
The finance minister observed that REITs provide a structured and transparent mechanism for channelizing real estate investments into productive sectors of the economy. He highlighted their role in promoting documentation and supporting the formalization of the real estate, construction, and development sectors, alongside improving capital allocation and economic activity.
The discussions also focused on broadening investor participation and improving market depth. Enhancing investor awareness, strengthening confidence in REIT instruments, and ensuring efficient secondary market functioning were highlighted as key to facilitating investor entry and exit and sustaining market growth.
The meeting further emphasized aligning Pakistan’s REIT framework with evolving international practices while maintaining simplicity, clarity, and ease of implementation. Participants stressed the importance of adopting pragmatic and well-calibrated measures that effectively support market development without adding unnecessary complexity.
The finance minister underscored the need for a coordinated and outcome-oriented reform approach focused on actionable steps within existing institutional frameworks.
In this regard, relevant stakeholders, including the Securities and Exchange Commission of Pakistan (SECP), REIT issuers, market participants, and the Tax Policy Office, were assigned specific workstreams to undertake detailed reviews within their respective domains, particularly in taxation, regulatory processes, and market development.
The meeting was attended by Arif Habib, Chief Executive, Arif Habib Corporation Limited; Nadeem Riaz, Chief Executive, Dolmen Group; Ali Jameel, Chief Executive, TPL Corp Limited; among other private sector participatns, along with the Commissioner, Securities and Exchange Commission of Pakistan (SECP), the Secretary, Housing and Works Division, Director General, Tax Policy Office, alongside other officials from the Ministry of Finance.
