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BOI Invites Investors to Explore Pakistan’s Housing Sector

According to media sources, the Board of Investment (Boi) in Islamabad arranged a housing and construction symposium in Dubai to invite investors to investigate the housing sector in Pakistan.

In the seminar, it was disclosed that the annual need for housing in the country is approximately 700,000, but that only half of this demand is met.

BoI Secretary Fareena Mazhar urged investors to take advantage of the benefits, enormous tax-based reimbursements under tax laws amendment decree 2020, and ease of project approvals under Naya Pakistan Housing and Development Authority’s single-window operation (NAPHDA).

The secretary elaborated on the tax benefits by stating that builders and developers who qualify will be exempt from withholding taxes on the purchase of building supplies. It was also claimed that the tax on earnings, income, and gains from low-cost housing projects would be reduced by 90%.

Read: Solar Panels in Pakistan: Advantages and Disadvantages

In addition, Boi Secretary Mazhar announced that the Income Tax Ordinance has been revised to classify the construction industry as an industrial enterprise, thereby granting it access to the benefits offered to other industries.

Under this plan, each bank will ensure that by December, at least 5 percent of their domestic private sector credit will be allocated to the development of structures and homes.

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