UBG Calls for Urgent Measures to Revitalize Construction Sector

The Southern Zone of United Business Group (UBG) Vice Chairman (VC) Syed Mazhar Ali Nasir has called on the government to implement immediate measures to revitalize the construction and housing sector.

This revival is seen as critical to preventing capital flight, unlocking a USD 100 billion investment potential, and supporting over 70 industries tied to construction. The construction sector, widely regarded as a cornerstone of Pakistan’s economy, is currently facing significant challenges.

However, with appropriate government support, it has the potential to drive robust economic growth. Revitalizing this sector would also stimulate ancillary industries such as cement, iron, ceramics, and others, leading to heightened economic activity and job creation for both skilled and unskilled workers.

To address these challenges, VC Nasir proposed several measures:

1. Lowering this tax would encourage investment in the housing market.
2. Declaring the first property purchase tax-free would promote homeownership and stimulate market activity.
3. Removing the 3% FED, which is legally unenforceable in provinces, would reduce barriers to sector growth.
4. Encouraging banks to classify construction as a priority sector could help stimulate broader economic development.
5. Removing this concept, which has significantly hampered growth in the housing sector, would create a more favorable investment climate.
6. Launching a 10-year fixed-rate mortgage tied to the 10-year PIB bond yield would make homeownership more affordable for the general public.

VC Nasir emphasized that implementing these measures would not only revitalize the construction and housing sector but also contribute to broader economic growth, job creation, and increased foreign investment.

By addressing these challenges, the government could position the sector as a key driver of Pakistan’s economic development.