KARACHI: President of the Korangi Association of Trade and Industry (KATI), Junaid Naqi has proposed key measures for the revival of the housing sector. He said that immediate implementation of these measures by the government could not only prevent capital flight but also unlock $100 billion in investment potential.

According to Junaid Naqi, the construction and housing sector is the backbone of Pakistan’s economy. This industry, connected to 72 allied sectors, provides numerous employment opportunities and plays a pivotal role in driving economic growth.

He suggested that to fully activate the housing sector, the government should reduce withholding tax on property transactions to 1% and declare the first property purchase tax-free to encourage homeownership.

The KATI President further urged the government to abolish the 3% Federal Excise Duty (FED), which is legally unenforceable in provinces and imposes an unnecessary burden on the industry.

Junaid Naqi emphasized that the “deemed income” concept is a significant obstacle to the growth of the housing sector and must be removed immediately.

He also proposed that the government introduce a 10 years fixed-rate mortgage product linked to the 10-year PIB bond yield to make homeownership more affordable.

Additionally, he called for the government to encourage banks to classify the construction sector as a priority industry, which would drive broader economic development.

Junaid Naqi noted that these measures would not only pave the way for economic recovery but also help unlock the full potential of Pakistan’s housing sector.

Copyright Business Recorder, 2025