Real Estate Sector Welcomes Federal Budget: Tax Relief, Housing Subsidies to Boost Construction

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ISLAMABAD – Web Desk: Real estate sector stakeholders have welcomed government measures in the Finance Bill 2026-27, including reduction in withholding tax on property transactions, substantial funding for the Prime Minister’s Own Home Scheme, and the launch of a sustainable urban development program.

Association of Builders and Developers (ABAD) Chairman Hassan Bakhshi stated that while government measures are insufficient, tax relief and housing subsidies will accelerate economic activity in the construction sector and contribute to overall economic growth. He noted that the construction industry plays a key role in creating employment opportunities and drives growth in related sectors including cement, steel, paint, tiles, hardware, wood, and transport.

Bakhshi appreciated the allocation of Rs 71 billion for the Prime Minister’s Own Home Scheme as significant progress toward meeting housing needs, urging the government to develop a comprehensive 10-year roadmap for the housing and construction sector to attract domestic and foreign investment.

Tristar International Consultants Chairman Ibrahim Amin praised the government’s decision to allocate Rs 54 billion for constructing 150,000 low-cost housing units under the sustainable urban development program, calling the digital master plans for 10 cities a forward-looking initiative. He noted that ongoing geopolitical tensions in the Middle East have created opportunities for local and overseas Pakistanis to invest savings in Pakistan’s real estate sector.

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