Government Pledges Reforms to Strengthen Real Estate Sector, Signals New Investment Measures

ISLAMABAD: The government has expressed its commitment to strengthening and revitalizing the real estate sector in Pakistan, while indicating the introduction of new reforms aimed at boosting investment and improving market efficiency.
Federal Minister for Finance and Revenue Muhammad Aurangzeb said that the role of the business community, financial institutions, and other stakeholders is highly valued, emphasizing that continuous consultation will be ensured in the policy-making process.
He made these remarks while chairing a virtual meeting of the focus group established for the promotion of Real Estate Investment Trusts (REITs) and capital market development, according to the Ministry of Finance.
The meeting was attended by prominent business figures including Arif Habib, Nadeem Riaz, and Ali Jameel, along with senior representatives from both the public and private sectors.
Participants stressed the need for practical and coordinated measures to make the real estate sector more organized, transparent, and attractive for investment.
The finance minister welcomed the participants and underscored the importance of continued consultation. He said REITs serve as a transparent and structured mechanism to shift real estate investment toward productive sectors of the economy.
Discussions focused on improving the tax framework, simplifying procedures, and increasing participation of small investors in order to expand the REIT market in Pakistan.
Participants noted that while Pakistan’s REIT market has shown initial progress, there is significant room for expansion through effective policy measures and improved coordination.
Key areas highlighted during the meeting included regulatory clarity, removal of administrative bottlenecks, and institutional alignment.
Officials also emphasized enhancing investor confidence, awareness campaigns, and the development of an efficient secondary market to ensure sustainable investment growth.
It was agreed that Pakistan’s REIT framework should be aligned with international best practices while remaining simple, clear, and practical.
The finance minister directed relevant institutions, including the Securities and Exchange Commission of Pakistan, REIT issuers, the tax policy office, and other stakeholders to review tax, regulatory, and market development issues and submit actionable recommendations.
The meeting concluded with a renewed commitment to creating a transparent, stable, and investor-friendly environment aimed at promoting investment and supporting long-term economic growth.