Karachi: President of the Korangi Association of Trade and Industry (KATI), Junaid Naqi, has outlined critical measures aimed at revitalizing Pakistan's housing sector, which he claims could unlock $100 billion in investment potential and provide substantial employment opportunities across 72 allied industries. Naqi emphasized the urgency of government action to prevent capital flight and stimulate economic growth.

According to a statement by Korangi Association of Trade and Industry, Naqi described the construction and housing sectors as integral to Pakistan's economic framework. He highlighted the sectors' significant role in employment generation and proposed a series of government interventions to bolster the industry.

Among the key measures proposed by Naqi is the reduction of withholding tax on property transactions to 1% and making the first property purchase tax-exempt. This, he argues, would incentivize homeownership and inject vitality into the housing market.

The KATI President also called for the abolition of the 3% Federal Excise Duty (FED), labeling it an undue financial burden on the industry that is not legally enforceable in provinces.

Naqi identified the concept of deemed income as a major barrier to sectoral growth, advocating for its immediate removal. He also recommended the introduction of a 10-year fixed-rate mortgage product linked to the 10-year PIB bond yield to enhance affordability for prospective homeowners.

Additionally, Naqi urged the government to prioritize the construction sector by encouraging banks to classify it as a priority industry, which he believes would lead to broader economic development.

These initiatives, according to Naqi, are essential for economic recovery and for unlocking the full potential of Pakistan's housing sector.