How Pakistan Can Revive Its Real Estate Sector: Dr Anosh Ahmed Shares the Key
Business
Dr Anosh Ahmed offers valuable insights into the challenges of real estate sector
Investors in Pakistan feel overly rigid tax regulations could drive investment out of the country
UAE offers zero corporate and income tax on most industries
Dr Anosh also points out the importance of a clear and consistent regulatory framework
By Salman Khan
Pakistan’s real estate sector was once regarded as one of the safest and most lucrative investment opportunities. Both local and overseas Pakistanis viewed property investment as a means of safeguarding their wealth, especially given the consistent depreciation of the Pakistani rupee against the US dollar.
Real estate offered stability and security, making it a preferred option over bank savings, which were vulnerable to inflation and currency devaluation. However, in recent years, the landscape has shifted dramatically, and the challenges facing the sector have multiplied.
One of the biggest hurdles was the rapid rise in interest rates, which made property financing nearly impossible for many investors. Those who relied on bank loans to purchase land or properties found themselves burdened with extremely high borrowing costs.
While the government has now reduced interest rates from 22% to 12%, another major concern has surfaced—the stringent conditions imposed by the International Monetary Fund (IMF). As Pakistan negotiates for the next $1 billion tranche from the IMF, one of the key demands is expanding the tax net to include the retail and real estate sectors.
This proposal has sparked concern among major real estate investors in Pakistan, who argue that overly rigid tax regulations could drive investment out of the country. Prominent property developers have already warned the government that if the tax laws are not investor-friendly, capital may shift to more favorable destinations such as the UAE.
The Tax Laws (Amendment) Bill 2024, currently under review by the National Assembly’s Finance and Revenue Committee, is at the center of these discussions. While taxation is necessary for economic stability, policymakers must ensure that these measures do not deter investors or stifle growth in an already struggling sector.
INSIGHTS OF AN EXPERT
Dr Anosh Ahmed, a Pakistani-American physician, entrepreneur, and philanthropist, offers valuable insights into these challenges. With extensive business experience in the U.S., healthcare, real estate, and philanthropy, Dr Anosh has expanded his operations to Dubai, citing its investor-friendly policies as a key factor.
He strongly believes that if Pakistan implements similar policies, it could attract significant investment and unlock tremendous economic potential.
According to Dr Anosh, one of Dubai’s biggest advantages is its tax policies. The UAE offers zero corporate and income tax on most industries, making it a highly attractive destination for investors. However, he stresses that tax incentives alone are not what make Dubai a global business hub. "What truly sets Dubai apart is its comprehensive support system for businesses. The city’s infrastructure, from its world-class airports and seaports to its modern business parks, ensures smooth and uninterrupted operations. This kind of efficiency is crucial for any thriving investment market," he explains.
Beyond infrastructure, Dr Anosh highlights the UAE government’s proactive approach to attracting foreign investment. "Dubai has made it incredibly easy for businesses to set up and grow. The company registration process is streamlined, long-term visas are offered to investors, and the government actively promotes business stability," he notes. These factors create a sense of security for investors, encouraging them to commit to long-term projects without fear of abrupt policy changes.
Dr Anosh also points out the importance of a clear and consistent regulatory framework. "Markets flourish where investors feel protected. In the U.S. and Dubai, there is a strong emphasis on transparency, legal protection, and ease of doing business. Pakistan must adopt similar strategies if it wants to attract both domestic and foreign investors," he says.
He further explains that unpredictability in government policies can discourage investment, making it difficult for long-term projects to take off. "Entrepreneurs and businesses need assurance that their investments are safe. If Pakistan creates an environment of trust and stability, the potential for economic growth is enormous," he adds.
Dr Anosh believes that one of the most critical steps for Pakistan’s real estate sector is improving its infrastructure. "A country’s development is directly linked to the quality of its infrastructure. Roads, public transportation, power supply, and digital connectivity all play a crucial role in making a country an attractive investment destination. Dubai’s success is largely due to its seamless infrastructure, which enables businesses to operate without unnecessary delays," he explains.
Another key aspect he emphasizes is the need for government support in real estate and construction. "The real estate sector is a major driver of economic activity. It creates jobs, boosts demand for materials, and stimulates related industries. If Pakistan provides incentives for property development, such as tax breaks for new projects or simplified approval processes, we will see a major shift in investment trends," he suggests.
Dr Anosh also touches on the importance of leveraging technology in real estate. "In the U.S., digital platforms have revolutionized the real estate market, making property transactions seamless and transparent. Pakistan should adopt smart technology to enhance efficiency and reduce bureaucratic hurdles. Online property registries, automated approval systems, and blockchain-based land records can eliminate corruption and inefficiency," he proposes.
Despite the current challenges, Dr Anosh remains optimistic about Pakistan’s long-term potential. "Pakistan has a young and dynamic population, a growing middle class, and untapped natural resources. He states that these are the fundamental ingredients for economic success. With the right policies in place, Pakistan can transform its real estate sector into a powerhouse of growth.
However, he warns that time is of the essence. "Countries like the UAE have demonstrated that policy reforms and investor-friendly initiatives can lead to rapid economic expansion. He also cautions that Pakistan needs to act swiftly to introduce measures that make investment easier, rather than more complicated. Delaying reforms will only push investors to other markets.
As Pakistan works to stabilize its economy and secure IMF funding, it must also prioritize policies that encourage investment rather than drive it away. Dr Anosh firmly believes that a balanced approach—where economic reforms support rather than hinder business growth—is the key to long-term success. "The choice is simple: either create an environment where investors feel confident, or risk losing valuable capital to other countries," he says.
For Pakistan’s real estate sector to regain its strength, it needs bold, strategic reforms that prioritize stability, investor confidence, and long-term growth. With the right steps, Pakistan can turn its challenges into opportunities, making the country a thriving hub for investment and economic prosperity.
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