Sargodha: The construction and housing sector is the backbone of Pakistan's economy as the industry is directly linked to 72 sectors and the government should take immediate steps to revitalize it.
These views were expressed by Sargodha Woman Chamber of Commerce and Industry Chairman Shamim Aftab in an interview. She said that the government needs to focus on the sector to prevent the outflow of investment to foreign countries. "Reviving the housing sector will not only prevent capital outflow but also create the potential for $100 billion in investment. The government's immediate response will pave the way for strong economic recovery and growth," she said. She added that the construction and housing sector is the backbone of Pakistan's economy, as it is directly linked to 72 industrial sectors, which create large-scale employment opportunities. "To revive Pakistan's housing sector and unlock its full potential, the government should reduce the withholding tax on property transactions to 1% and declare the first property purchase tax-free to promote home ownership," she added.
Furthermore, she suggested that the government should eliminate the 3% federal excise duty. She also mentioned that the concept of the "assumed income" has significantly hindered the growth of the housing sector and it should be abolished immediately. She recommended that the government should introduce mortgage products with a fixed interest rate for 10 years, linked to the 10-year PIB bond yield, to make home ownership more affordable whereas the government should encourage banks to prioritize construction as a sector to boost broader economic development.