ABAD chairman Hassan Bakshi on Saturday revealed that around 15 to 20 billion dollars have been transferred to the UAE, with even more capital expected to follow. He made the remarks while addressing the 8th Pakistan International Property Expo and Tourism Investment Opportunities Conference.
The ABAD chairman stated that the real estate system in Pakistan cannot operate effectively under current financial and taxation policies. “There is a 60 percent tax in Pakistan, which is not even seen in Europe,” he said. He emphasized that in Karachi’s South District, 100 construction projects are ready but face obstacles due to high taxation.
Hassan Bakshi compared local taxes with Dubai, noting that property transfer tax there is just four percent, while Pakistan imposes 40 percent. “Property can be purchased in New York and London, but not in Karachi,” the ABAD chairman added, urging government support for the construction sector to stimulate economic growth.
Addressing the conference, President Islamabad Chamber of Commerce Sardar Tahir Mehmood also highlighted challenges in the real estate sector. He said that government policies and IMF conditions have negatively affected the market. Pakistan faces a shortage of 20 million housing units and requires 1.5 million homes every year to meet growing demand.
Senior Vice President of FPCCI stressed the importance of promoting Pakistan’s brand and attracting investments to boost the real estate and tourism sectors. He emphasized that easing taxation and providing incentives are crucial for sector growth.
The ABAD chairman’s statements underscore the urgent need for policy reforms in Pakistan’s real estate industry. Without support, capital flight and limited construction development may continue, affecting both the economy and housing availability across the country.
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