ISLAMABAD: The federal government has prepared a new tax-free real estate investment package aimed at attracting overseas Pakistanis, according to sources in the Ministry of Finance.
The package aims to remove existing barriers and complexities, making real estate investment in Pakistan more accessible and investor-friendly for overseas Pakistanis.
The proposed plan has also been shared with the International Monetary Fund (IMF) for approval.
Sources said the package is designed to make real estate investment safe, transparent, and tax-free for overseas Pakistanis, while also encouraging foreign investors to bring in funds in dollars.
The government has developed a set of measures to boost activity in the real estate sector, including the establishment of special investment zones to promote construction and development.
As part of the plan, authorities are considering the creation of Real Estate Investment Trusts (REITs) and the introduction of escrow accounts to ensure secure financial transactions.
The escrow system is intended to minimize fraud and enhance transparency in property dealings.
Officials from the Ministry of Housing and Works said the package will provide additional facilities and incentives for overseas Pakistanis to invest in the construction sector.
The initiative also takes into account the evolving situation in Gulf countries amid the Iran war, with the aim of attracting investment flows into Pakistan.
Sources added that the government may formally introduce the package next month.
Under the proposed framework, incentives will primarily benefit tax filers, while no major relief measures are currently planned for non-filers.
The plan also includes proposed adjustments to taxes on property transactions, which are currently awaiting approval from the IMF.
Meanwhile, IMF has shared a draft of the Memorandum of Economic and Financial Policies (MEFP) with Pakistan for unlocking of $1.2 billion tranche
As per details, progress has been made towards securing a $1.2 billion tranche from the International Monetary Fund, as virtual engagements between Pakistan and the Fund continue, according to sources within the Ministry of Finance Pakistan.
