ABAD calls for stable tax regime to boost construction industry

KARACHI: Chairperson of the Association of Builders and Developers of Pakistan (ABAD) Hassan Bakshi has urged the government to establish a predictable and consistent tax regime to stimulate investment and promote growth in the country’s construction industry.

In a recent address, the chairperson highlighted the adverse impact of frequent changes in tax policies on the real-estate and construction sectors, which are vital to Pakistan’s economic development.

He stressed that an unpredictable tax environment creates uncertainty for developers and investors, stalling projects and discouraging long-term planning. The chairperson called for a stable tax framework that allows builders to make informed decisions and invest confidently in large-scale projects.

“The construction industry is a major driver of Pakistan’s economy, significantly contributing to employment and infrastructure development. However, the lack of a consistent tax policy is one of the biggest hurdles facing the industry. Frequent changes in tax laws disrupt business operations, delay projects and discourage local and foreign investors,” he stated.

Bakshi further explained that the construction sector requires long-term planning, and a steady tax regime would encourage more investment in housing, commercial, and infrastructure projects. A predictable tax policy would also promote transparency and fairness, allowing businesses to operate without the fear of sudden financial shocks.“Builders need to know what to expect regarding taxes so they can plan projects with confidence. A consistent tax policy will not only help developers but will also attract foreign direct investment into the country. This is essential for boosting the overall economy,” he added.

The chairperson also pointed out that the construction sector has enormous potential to drive economic growth if the right policies are implemented. He urged the government to engage with industry stakeholders, like ABAD, to develop tax policies that encourage investment, create jobs and contribute to the country’s long-term prosperity.

He highlighted that a stable tax regime would also help address Pakistan’s growing housing demand. Builders would be more likely to invest in affordable housing projects if they could rely on predictable costs and taxes, which would help alleviate the housing shortage in urban areas and ensure sustainable urban development.