KARACHI: The Chairman of the Association of Builders and Developers (ABAD), Muhammad Hassan Bakhshi, has urged the government to implement a long-term tax policy and provide easier access to financing to stimulate growth in the country’s struggling construction sector.
Talking to the journalists at ABAD House, Bakhshi highlighted the critical challenges facing the industry. “The absence of a 15 to 20-year tax policy is discouraging large-scale investments in construction projects,” he stated. “More than 70% of construction activities in Pakistan have come to a halt due to frequent changes in the tax system and excessive taxation.”
The ABAD chairman emphasised that billions of rupees are currently tied up in stalled projects, and both local and foreign investors are increasingly looking to invest abroad rather than in Pakistan’s construction sector.
Bakhshi also called for banks to be mandated to provide loans for construction projects at favourable terms and low interest rates. He argued that financing the construction sector would not only benefit the industry directly but also stimulate over 72 allied industries, providing a significant boost to the country’s economic development.
Land encroachment was identified as another major obstacle to the industry’s progress, said Bakhshi, citing a recent incident where an ABAD member’s 62-acre plot in the Keamari area was seized by armed individuals.
Mohsin Sheikhani, ABAD’s Patron-in-Chief, who was also present at the event, highlighted the pressing need for housing in Pakistan. “Our country faces a shortage of over 12 million residential units,” he said. “ABAD aims to address this need, but we can only do so if the government creates conducive environment for construction activities.”
Sheikhani warned that if the current situation persists, builders and developers may be forced to shift their investments abroad, further exacerbating the challenges facing Pakistan’s economy.
Copyright Business Recorder, 2024
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