ISLAMABAD: The government has expressed its commitment to strengthening real estate in the country and has hinted at new reforms for investment in this sector.
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, while appreciating the active role of the business community, financial institutions and other market stakeholders, has emphasized that continuous consultation should be ensured in the policy-making process with major dealers so that the reforms remain in line with the ground realities and are in line with the broader goals of the economy.
According to the Ministry of Finance, he said this while chairing a virtual meeting of the Focus Group established for the promotion of Real Estate Investment Trusts (REITs) and the development of the capital market.
The meeting was attended by prominent business figures Arif Habib, Nadeem Riaz and Ali Jamil, among others, while important representatives from the public and private sectors also attended.
The meeting emphasized that coordinated and practical measures are indispensable to make the real estate sector organized, transparent and more attractive for investment. The Finance Minister, while welcoming the participants, highlighted the importance of continuing the consultation process.
During the meeting, issues related to the promotion of REITs such as improving the tax system, simplifying the procedures and increasing the participation of investors, especially small investors, were discussed in detail.
The participants pointed out that the REIT market in Pakistan has certainly made initial progress, but there is room for further expansion, which can be exploited through effective policy measures and better coordination.
The meeting gave key importance to clarity in rules and regulations, removal of administrative barriers and coordination between different institutions. The Finance Minister said that REITs provide a transparent and systematic means of channeling real estate investment to productive sectors of the economy, which not only promotes the documentation system but also strengthens the inclusion of construction and development sectors in the formal economy.
The meeting also emphasized on increasing investor confidence, awareness campaigns and an effective secondary market system to make investment opportunities sustainable. It was also agreed that Pakistan’s REIT framework should be aligned with international best practices, but kept simple, clear and workable.
The Finance Minister directed the relevant institutions, including the Securities and Exchange Commission of Pakistan, REIT issuers, Tax Policy Office and other stakeholders, to submit actionable proposals after conducting a detailed review in the areas related to taxation, regulatory matters and market development.
At the end of the meeting, it was reiterated that the government would provide a transparent, stable and investor-friendly environment that would be conducive to investment promotion and sustainable economic growth.
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