Imran Khan’s Government and Real Estate Business in Pakistan
This is a million-dollar question which is in everyone’s mind that is related to real estate business in Pakistan. Since the new government formed, real estate prices are clearly showing bearish trends in all areas constantly. A huge selling pressure is being observed in the real estate business. In this article we will try to figure out the reasons and factors.
Downfall of Prices:
Previous Finance minister Ishaaq Dar imposed extra taxes on all transfers of properties. It was the start of falling prices of real estate. Real estate business is the best choice of investors anywhere but with friendly business environment.
1st 100 days of the PTI Government:
Since the government formed, immediately after a well-designed media campaign launched against the government to prove them incapable in result Pakistan Stock Exchange crashed badly, subsequently an economic panic situation arises across the country, moreover currency devaluation impacted negatively. Do not worry; this situation is fizzled out already.
Government looks determine in FBR (Federal Board of Revenue) reforms and few measures already taken in this regard. A task force has started working on tax reforms. This is also one of the factors about current real estate market scenario.
No doubt there are most of investment part in real estate is legitimate and people’s hard-earned money but in the same time real estate is the charming option for those who carries black money earned through unfair means like kick-back, tax evasion etc. Due to a massive crack-down on corrupt elements in Pakistan is also a reason of selling pressure in the Pakistan’s real estate especially in posh areas.
Encouragement of Exports:
Government looks very much concerned about export friendly policies for the manufacturers. This is the most effective source to build the foreign reserves. If the government succeeds to achieve the set goals, revolution can be seen in real estate business in Pakistan.
Ease of doing Business:
Commerce and Finance ministry officials have started working on “Ease of doing Business” since the Prime Minister Imran Khan has mentioned repeatedly about it in different speeches. A task force is also formed and they are working to start on one window operation for new startups and investors to start the business.
At the moment, as per government statement 75000 jobs allocated to the Pakistanis since the CPEC started. In the days to come as CPEC projects will be taking place a big number of investors, businessmen and entrepreneurs are expecting to come to Pakistan. Foreigners can be a good tool to generate the economic activity. Although it is hard to find the full detail of CPEC projects but many areas are declared as industrial areas. Simply CPEC would be a great factor to boost the Real Estate business among others.
Real Estate vs. Stock Exchange:
Real estate market likely to be stock Exchange market Asad Umar Minister of Finance says. It’s not as simple as Minister said, Shares markets practices under rules & regulations but real estate sector in Pakistan is totally a gray area business. It is a time taking procedure but it’s possible as we know 1st world real estate sector deals under a set mechanism which is helpful for both seller and purchaser.
Forecast of Real Estate Business in Pakistan:
Keeping in the view of above factors we can assess the future market of real estate in Pakistan would be a prime business in Pakistan. It also depends on the quantum of government reforms achievements.
A wise Japanese economist’s famous saying is, ‘’Any Country’s economy can be gagged with real estate prices if getting increase means economy is growing’’.
All the above scenario will no doubt favor the overall progress and prosperity of real estate business in Pakistan.