Latest news with #MeraPakistanMeraGhar
Business Recorder
11 hours ago
- Business
- Business Recorder
Better news
At its current pace, cement offtake this year is likely to end up roughly at the same level as last year. Domestic dispatches are estimated to have declined by around 6 percent, but total dispatches have been buoyed by a 24–25 percent rise in exports. Despite muted local demand, cement companies have remained largely profitable, thanks to strong domestic pricing and controlled coal costs. The upcoming budget, however, could bring even better news. After quietly dissolving former Prime Minister Imran Khan's flagship initiative—the Naya Pakistan Housing Development Authority (NAPHDA)—Prime Minister Shehbaz Sharif now appears poised to introduce a housing finance subsidy, echoing Mera Pakistan Mera Ghar (MPMG) scheme in structure, but likely introduced with less fanfare. In its four years of operation, NAPHDA had planned 156,000 housing units, of which only about 58,000 were completed. Of these, 31,000 were financed through MPMG. Given the original target of 5 million homes, progress has been disappointing. It's worth noting, however, that many of the projects under NAPHDA were not initiated by the authority itself but were pre-existing schemes absorbed into its portfolio. The current administration does not appear keen on launching a massive, centrally managed housing initiative—which, considering NAPHDA's bureaucratic pitfalls and Pakistan's fiscal constraints is probably wise. Instead, the government is planning a modest, targeted mark-up subsidy for 200,000 homes. That's a small and manageable start. Banks already have mechanisms in place to assess mortgage applications, owing to their experience with MPMG. According to BR estimates—since the SBP did not disclose borrower figures—approximately 78,000 mortgages were issued between 2020 and 2022, tied to Rs100 billion in loan disbursements (read: 'Now you see it, now you don't'). With limited data, it's difficult to assess the full impact of the scheme. But if Sharif's plan delivers financing for 200,000 homes through the formal banking channel, it would be more than double of what the MPMG ever achieved. And double is better, right? One cannot possible say. The fact is, whether a subsidy scheme will be impactful and add valuable output to the housing market or not, is a question for another day or another political era.. We will have to wait for the Budget 2026 announcement to see the exact modalities of the subsidy—who the scheme will target, and how it will be executed. What's certain increase housing credit will spur demand for construction materials, and cement stands to gain the most which the industry will undoubtedly welcome.
Business Recorder
3 days ago
- Business
- Business Recorder
Think tank seeks tax exemptions for construction sector
ISLAMABAD: An Economic Thinktank has strongly recommended Federal Board of Revenue (FBR) to exempt construction sector from advance taxes and sales tax in coming budget (2025-26) to reduce the overall burden of transaction taxes on real estate sector. According to a report of Economic policy & Business Development think tank on 'Housing and Construction Sector-Challenges and Recommendations', it has recommended the FBR to reduce transaction taxes burden during buying and selling of immovable properties. This is needed to deal with the housing deficit with 10 million units and growing day by day. Around 72 allied industries of the real estate sector are operating at only 30-40% capacity. The report revealed that the FBR should also simplify tax on deemed income basis under section 7E of the Income Tax Ordinance 2001 and implement an expeditious dispute resolution system. Overall the Economic Thinktank has recommended rationalization of tax regime on the real estate sector for 2025-26. The government should also develop comprehensive town planning framework, it recommended. The real estate revival is as a key driver of economic growth keeping in view its ability to generate employment, address critical housing shortages, and sustain 40-50 allied industries. Thinktank pointed out that the Real Estate Regulatory Authority (RERA) has been establishment, but not fully functional. To address the market irregularities and lack of regulation in the real estate sector, National Assembly had passed the 'Real Estate Regulatory Authority Act (2020)' to regulate the real estate sector in Islamabad. It also recommended that revival of Mera Pakistan Mera Ghar scheme requires urgent attention. It recommended to establish operational RERA with immediate effect; implement online building approval system; create digital mortgage platforms; develop centralized property database; implement blockchain solutions for transparent transactions; promote modular/prefab construction and develop green building standards. Thinktank has further recommended creating vocational training institutes with NAVTTC and TEVTA; implement standardized wage structures; develop safety training protocols; launch programs to retain skilled professionals and promote gender-inclusive workforce initiatives. Copyright Business Recorder, 2025
