The Association of Builders and Developers of Pakistan (ABAD) has strongly rejected the Federal Budget for the fiscal year 2024-25, warned that the announced budget could lead to the bankruptcy of businesses nationwide, including the construction industry. ABAD Chairman AsifSumsum, along with Senior Vice Chairman Ibrahim Habib, Vice Chairman ZeeshanSiddiqui, Southern Region Chairman Mustafa Shaikhani, Northern Region Chairman Sultan Gohar, and Hyderabad Sub Region Vice Chairman KashifShaikh, criticized the government for increasing property and sales taxes. They also condemned the retention of Clause 7-E of the Income Tax Ordinance. Chairman Sumsum highlighted that the new budget imposes a significant financial burden on the construction industry and other sectors, including real estate.
“The increase in property and sales taxes will raise construction costs and deter investment,” he said, noting that the rising prices of construction materials will further escalate. Pakistan already faces a housing shortage of 12 million units. Sumsum warned that the increased costs will be transferred to homebuyers, making homeownership even less attainable for the average citizen. He accused the government of driving businesses into bankruptcy to save itself, stating, “The construction sector is vital for GDP growth and employment generation.” Association of Builders and Developers of Pakistan (ABAD leaders have demanded the abolition of Clause 7-E and the rollback of property and sales tax increases.
They emphasized that supportive tax policies are crucial for economic development. “The new budget shows that the government ignored our concerns,” they said, urging for a conducive environment to boost construction activities, stimulate economic growth, and provide employment to millions. ABAD’s call to action highlights the potential economic repercussions of the budget and stresses the need for policy adjustments to support Pakistan’s construction industry and broader business community.
