Pakistan’s real estate sector, a once-vibrant pillar of the economy, now finds itself cornered by challenges that threaten its essence. High taxes, soaring interest rates, and economic instability have dimmed the allure of property investments, sending ripples across employment, government revenues, and economic momentum. Yet, as the dust settles, opportunities to rebuild and rejuvenate this sector stand tall – offering hope, innovation, and growth.

The tax landscape for real estate feels more like a labyrinth than a framework. Overlapping levies, like the deemed income tax (7E), weigh heavily on property owners and prospective investors, while an 18.5 percent tax on non-filers slams the door shut on many potential players. These policies, far from streamlining, discourage documented transactions and leave the sector stifled. For a domain contributing over 9 percent to GDP, such fiscal hurdles are not just counterproductive but perilous. The path forward demands clarity – simpler, rationalized taxes that incentivize compliance and draw in investors, not push them away.

Then comes the interest rate storm. At over 20 percent, it’s a gale that drives investments toward safer banking instruments, leaving real estate stranded. Across the border, India offers a rate of 6.5 percent, and Bangladesh, 5.5 percent. These figures aren’t just numbers; they’re sirens luring investors to friendlier shores. For Pakistan to compete, the cost of borrowing must come down. A lower rate doesn’t just breathe life into stalled projects; it lights the........

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