ISLAMABAD: The federal government is preparing a tax-free real estate investment package aimed at attracting overseas Pakistanis, sources within the Ministry of Finance revealed.
The proposed initiative seeks to simplify procedures and eliminate hurdles, making property investment in Pakistan more accessible and appealing for expatriates. The plan has also been shared with the International Monetary Fund for review and approval.
According to officials, the package is designed to promote safe, transparent, and tax-free investment opportunities, while encouraging overseas Pakistanis and foreign investors to bring in funds in foreign currency, particularly US dollars.
Key measures under consideration include the establishment of special investment zones to stimulate construction activity and broader development in the real estate sector. Authorities are also exploring the introduction of Real Estate Investment Trusts (REITs) and escrow account systems to enhance financial security and reduce the risk of fraud in property transactions.
The escrow mechanism, in particular, is expected to improve transparency and build investor confidence in the sector.
Officials from the Ministry of Housing and Works indicated that additional incentives and facilitation measures will be offered to overseas Pakistanis interested in investing in construction projects.
The initiative also reflects the government’s strategy to capitalize on shifting economic dynamics in Gulf countries amid ongoing regional tensions, with the aim of redirecting investment flows toward Pakistan.
Sources added that the package could be formally unveiled next month. However, most incentives are likely to be limited to tax filers, with little relief expected for non-filers.
The proposal also includes potential revisions to property transaction taxes, though these remain subject to IMF approval.
Meanwhile, progress continues on securing a $1.2 billion tranche from the IMF, as discussions between Pakistan and the lender move forward. A draft of the Memorandum of Economic and Financial Policies (MEFP) has reportedly been shared, signaling advancement in negotiations.
