KARACHI: The Pakistani business community has called upon the government to implement measures to revive the construction sector, arguing it could unlock $100 billion in investment and prevent capital flight.

President of the Korangi Association of Trade and Industry (KATI) Junaid Naqi proposed reducing withholding tax on property transactions to 1.0 per cent and declaring the first property purchase tax-free to encourage homeownership. He also urged the abolition of the 3.0 per cent federal excise duty (FED), deemed legally unenforceable in provinces.

Former Senior Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Syed Mazhar Ali Nasir echoed these sentiments, emphasising the need to reduce the tax burden to stimulate investment. He highlighted that the construction sector, linked to over 70 allied industries, is crucial for economic growth and job creation. Both officials stressed the need for government support, including a 10-year fixed-rate mortgage product linked to the 10-year PIB bond yield to make homeownership more affordable and encouraging banks to prioritise the construction sector.