Auction for commercial plots: hike in taxes the reason behind lack of investor interest

ISLAMABAD: The Senate Standing Committee on Housing and Works discussed the recent hike in taxes from 43 per cent to 63 per cent, which is believed to have played a significant role in the lack of investor interest in the recent auction of commercial plots.

The committee was chaired by Senator Nasir Mehmood, where the committee reviewed the progress of ongoing projects and addressed various challenges.

During the session, the Director General of FGEHA provided updates on the development of Sectors F-12 and G-12, revealing that an award of 7.23 million per kanal was announced on April 23, 2023. He also highlighted complications with landowners in Sectors F-14 and F-15, stating that weekly hearings are being held and that Sector F-12 will be launched once the Supreme Court delivers its judgment. The progress and challenges in Sectors G-13 and G-14 were also discussed.

The committee members scrutinised the details of the commercial plot auction held on August 7, 2024. It was noted that during its 31st meeting on January 31, 2024, the Executive Board of FGEHA approved a proposal to divide a 13-kanal plot from the Federal Government Employees Housing Foundation (EHFPRO) project into three smaller plots to maximise revenue in line with current market trends. Despite extensive advertising efforts, including below-the-line promotions, the slow progress of the project and heavy taxation deterred potential investors, leading to an unsuccessful auction.

Senator Khalida Ateeb expressed concern over the ineffective results despite substantial advertising expenditures, while Chairman Senator Nasir Mehmood urged the formulation of a pragmatic strategy to overcome the current stagnation and achieve progress.

The committee also discussed the illegal occupation of Pak PWD land in Murree by the TMA Murree (Punjab Government), which is part of a 36-kanal project. Officials reported that legal action has been initiated and that the matter has been brought to the prime minister’s attention for swift resolution.

Additionally, Senator Saifullah Abro inquired about officers on deputation and the actions taken against those involved in misconduct. The Minister for Housing and Works assured that appropriate measures are being implemented and that the list of officers would be shared with the committee.

Lastly, the committee addressed a query from Senator Raja Nasir regarding the allocation of religious spaces, such as Imam Bargahs, in FGEHA sectors. Officials affirmed that religious sanctity is upheld during the allocation process. The chairman directed that clear rules and laws be established to ensure the sanctity of all religious communities is respected in future allocations.

The meeting was attended by several senators, including Muhammad Aslam Abro, Khalida Ateeb, Saifullah Sarwar Khan Nyazee, Husna Bano, Hadiyatullah Khan, Saifullah Abro, and Raja Nasir Abbas, as well as the minister and secretary of Housing and Works, the Director General of the Federal Government Employees Housing Authority (FGEHA), and senior officials from the ministry and FGEHA.

Copyright Business Recorder, 2024