Stakeholders in Pakistan’s real estate sector have urged the government to introduce major tax reforms in the upcoming Budget 2026-27. The aim is to attract local and foreign investment, revive construction activities, and bring more transparency to the market.
Leaders like Mohammad Hassan Bakshi, Chairman of the Association of Builders and Developers (ABAD), and Ibrahim Amin of TriStar International have shared key suggestions. They want the withholding tax under Section 236K on property purchases to be reduced further from 1.5% to 0.25% for tax filers. They also called for lowering the tax under Section 236C to improve market liquidity and remove double taxation on builders.
Other demands include making the abolition of tax on multiple properties permanent, ending the deemed income tax on properties, and creating a one-window digital system for all property taxes. They stressed the need to speed up the digitisation of land records, ensure transparent computerised transactions, and protect owners from land grabbers.
Experts believe these steps will encourage overseas Pakistanis to invest remittances in housing societies. The ongoing Middle East conflicts have created opportunities for Pakistan to attract such investments. Stakeholders also welcomed the government’s subsidised housing finance scheme and called for more support for builders and developers.
Lower transaction costs and simpler rules can shift the sector from a high-tax to a high-documentation model. This would increase formal economic activity, create jobs, and improve long-term revenue collection. The government is expected to finalise these proposals soon in the budget.