Govt's relief measures to revive real estate sector: Mian Nauman

LAHORE, (APP - UrduPoint / Pakistan Point News - 4th Jul, 2026) Federal Parliamentary Secretary for the Ministry of Planning & Development, Hafiz Mian Muhammad Nauman, said on Saturday that government's recent relief measures for the real estate sector are aimed at reviving investment, restoring market confidence and stimulating economic activity.

Addressing a seminar "Relief given by government to real estate sector and its future in Pakistan" organized by Lahore Chamber of Commerce and Industry (LCCI), he added that Pakistan must now move towards vertical urban development instead of the unchecked horizontal expansion of cities. He said the construction and real estate sectors are directly linked with around 70 industries and play a pivotal role in employment generation and economic growth. He stressed that affordable housing, banking support for long-term housing finance and sustainable urban planning are essential for the future development of the country. He was

The seminar was chaired by LCCI President Faheem Ur Rehman Saigol. Senior Vice President Tanveer Ahmad Sheikh, MPA Malik Shahbaz Ali, former LCCI Presidents Mian Anjum Nisar and Muhammad Ali Mian, Executive Committee Members, VC PIAF Nassrullah Mughal, Convener Standing Committee Major (R) Muhammad Rafiq Hasrat and a large number of stakeholders from the real estate sector attended the seminar.

Welcoming the participants, LCCI President Faheem Ur Rehman Saigol said that the real estate and construction sector serves as the backbone of the national economy, creating employment opportunities, attracting investment and supporting dozens of allied industries. He appreciated the government's recent tax relief measures, including the reduction in withholding tax on property purchases from 2.5 percent to 1.25 percent, reduction in withholding tax on property sales from 5.5 percent to 2.75 percent and the abolition of Section 7E. He said these initiatives would help restore investor confidence and improve business activity.

The LCCI President, however, said that the business community expects the reduction in FBR property valuation to be extended to other housing societies and areas as well. He termed this demand justified and urged the government to ensure equal treatment across the sector. He said the seminar had been organized to provide investors, developers, builders and other stakeholders with a better understanding of the government's policy measures, their expected impact and future opportunities in the real estate sector.

Mian Muhammad Nauman said that he had personally raised the issue of real estate reforms with Prime Minister Shehbaz Sharif nearly a year ago and strongly advocated for a comprehensive construction package.

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He said uncontrolled urban sprawl has significantly reduced green areas around major cities, particularly Lahore, and emphasized that international urban planning principles require adequate green belts between cities for environmental sustainability and food security.

He said Lahore has expanded far beyond its original boundaries, with housing schemes now stretching into Sheikhupura, Kasur and other adjoining districts. Instead of further horizontal expansion, he said, Pakistan should promote vertical development to utilize existing urban infrastructure more efficiently. He pointed out that nearly 150,000 to 200,000 residential plots remain vacant within Lahore alone, indicating that better utilization of available land should be prioritized.

Mian Muhammad Nauman said the government recognized the difficulties faced by the real estate sector over the past several years, which had led to reduced investment and declining business activity. He said extensive consultations were held with industry representatives, including ABAD and other stakeholders, to formulate reforms that would facilitate the sector while protecting investors.

He also highlighted the government's decision to abolish Section 7E, describing it as a major relief for property owners. He said imposing taxes on non-income-generating assets had created serious concerns among investors and that the government's reforms were intended to remove unnecessary burdens and revive confidence in the market.

Referring to affordable housing, he said access to home ownership remains beyond the reach of the common citizen due to high financing costs. He stressed that without active participation of the banking sector through long-term mortgage financing, affordable housing cannot become a reality. Drawing examples from developed countries, he said even low-income workers are able to own homes because banks provide financing over 15 to 20 years, a model Pakistan should adopt to address its housing shortage and promote inclusive economic growth.

Major (R) Muhammad Rafiq Hasrat and Malik Shahbaz Ali also addressed the seminar and emphasized the need for consistent government policies, further tax rationalization and close collaboration between policymakers and the private sector to unlock the full potential of Pakistan's real estate and construction industry.