Lahore: Nazir Hussain, President of the Pakistan China Joint Chamber of Commerce and Industry (PCJCCI), has put forward a series of proposals aimed at reviving Pakistan's housing sector to prevent capital flight and unlock an estimated $100 billion in investment potential. He emphasized that prompt government action could lead to significant economic recovery and growth.

According to a statement by Pakistan China Joint Chamber of Commerce and Industry, Hussain described the construction and housing sectors as the backbone of Pakistan's economy. He highlighted their direct connection to 72 industrial sectors, noting their role in generating employment opportunities and driving economic growth.

Brig. Mansoor Saeed Sheikh (Retd), Senior Vice President of PCJCCI, suggested that the government reduce the withholding tax on property transactions to 1% and make the first property purchase tax-free to encourage home ownership. He also recommended the elimination of a 3% Federal Excise Duty (FED), which he described as legally unenforceable in provinces and an unnecessary burden on the sector.

Zafar Iqbal, Vice President of PCJCCI, pointed out that the concept of "deemed income" has been a significant hindrance to growth in the housing sector, calling for its immediate removal. He proposed the introduction of a 10-year fixed-rate mortgage product linked to the 10-year Pakistan Investment Bond (PIB) yield to make homeownership more affordable.

Salahuddin Hanif, Secretary General of PCJCCI, added that the government should encourage banks to classify construction as a priority sector, which would, in turn, stimulate broader economic development.