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FDI Can Spur Construction Sector

Karachi: Although the government has set the building industry on a road of development, it still needs foreign investment to pick up speed in order to meet Pakistan’s enormous housing need.

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Local investment in the building sector has increased, but international investors have been reluctant to pump money into the sector as the nation prepares to meet the piled-up demand for 10 million dwelling units.

Nisar noted that the government needs as much foreign investment as possible, keeping in mind that the volumetric expansion of exports and remittances would only be a temporary occurrence.

He bemoaned the fact that despite offering tax incentives and guarantees of a one-window facility to the investors, Pakistan had been unable to draw any sizable foreign investment over the past few years.

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He said that changes would entice international capital to Pakistan’s real estate market, which is already returning 25–30% at a time when many industrialized nations’ real estate is experiencing losses.

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