New property valuation rates denounced

Islamabad : President of Islamabad Developer Association and former president of the Islamabad Chamber of Commerce and Industries Sardar Yasir Ilyas Khan has expressed grave concerns over the recent announcement made by the Federal Board of Revenue (FBR) to revise property valuation rates upward across 56 cities, effective from November 1, 2024.

He in a statement said this revision is anticipated to have a detrimental impact on Pakistan’s real estate landscape and could potentially lead to further capital flight. It is crucial to note that the real estate industry serves as a driving force for approximately 60 allied sectors, and this decision may have severe consequences for these sectors as well, he added.

He emphasised that while the intention behind this move may be to satisfy the International Monetary Fund (IMF) and reduce the fiscal deficit, which currently stands at a concerning 6% of Pakistan’s GDP amounting to Rs.7 Trillion, it is essential to engage with the business community before implementing such significant decisions.

Sardar Yasir Ilyas Khan said it is imperative to maintain business confidence in the face of policy changes. Given the current economic climate, disruptions in the business sector must be avoided, especially considering the cessation of wealth circulation due to the introduction of FED and the increase in capital gains tax to 15 percent this year.

In the Dubai real estate market, he said, Pakistani investors have made a significant contribution, amounting to USD 11 billion, positioning them as the second largest group of investors in the United Arab Emirates.

He said the business community opines that ongoing dialogue with the FBR is essential to strike a balance between achieving revenue targets and ensuring sustained growth and stability in the real estate sector.