IT is a reality that the real estate sector is one of the most important driving factors of the economic growth of Pakistan with thousands of people directly or indirectly associated with it. However, the industry these days is faced with a slump kind of situation which needs to be addressed immediately by taking on board the relevant stakeholders to avoid its total collapse.
Federation of Realtors Association (FRA) has also drawn attention of the government towards the problems faced by the sector and demanded it to do away with the unnecessary restrictions and taxes and announce a relief package for them just like other industries. Indeed this sector has remained unregulated for decades. It has also faced defamation because of its unstable structure, a wide circulating factor of grey income, wealth accumulation by the developmental parties, and complications regarding transparency and traceability. Indeed like any other sector, this should also be documented and regulated and brought to tax-net but this should be done in consultation with the Federation of Realtors Association which is the representative body of the real estate. Given the size of the people attached with it, crisis in this important sector will only add to the economic problems of the country and only lead to unemployment. Currently the situation is that the property buyers do not have sufficient financial resources to buy houses. Due to this many developers and builders are showing hesitation in undertaking new real estate projects. We therefore support FRA’s demand for a relief package and concessions in taxes to both the buyers and sellers as well as to those associated with the construction sector in order to facilitate its growth which has the ability to attract huge local as well as foreign investment. Since incumbent government has promised to construct five million houses to provide shelter to the homeless, therefore, it is important that the government fully support this sector to realize that promise. It is also for the real estate to be forthcoming in documenting this sector and pay the due taxes honestly.
