How Pakistan’s Real Estate Sector Can Be Revitalized: Insights from Dr. Anosh Ahmed
Pakistan’s real estate sector once stood as a pillar of economic stability, attracting investors both locally and abroad. Property investment was seen as a safe haven for wealth, particularly given the consistent depreciation of the Pakistani rupee against the US dollar. Over the years, real estate offered a more secure alternative to savings accounts, which were increasingly vulnerable to inflation and currency fluctuations.
However, in recent times, the landscape of the real estate sector has changed drastically. Rapidly rising interest rates made property financing unaffordable for many investors. Those relying on bank loans for purchasing land or properties were faced with high borrowing costs. While the government has now reduced interest rates from 22% to 12%, new challenges have emerged. One of the key hurdles is the set of conditions imposed by the International Monetary Fund (IMF), demanding that Pakistan expands its tax net to include both the retail and real estate sectors.
This proposed tax expansion has caused concern among major real estate investors in Pakistan, as many fear that overly stringent tax laws could push investments to more business-friendly countries like the UAE. The Tax Laws (Amendment) Bill 2024, which is currently being debated in Pakistan’s National Assembly, could determine the future of this vital sector. While taxation is important for economic growth, it’s essential that these new measures do not overwhelm investors or stifle potential growth in real estate.
Dr. Anosh Ahmed’s Vision for a Revived Real Estate Sector
Dr. Anosh Ahmed, a Pakistani-American entrepreneur, physician, and philanthropist, offers valuable perspectives on the real estate sector’s revival. Having gained significant experience in real estate, healthcare, and business across the United States, Dr. Anosh emphasizes the need for Pakistan to adopt investor-friendly policies similar to those of Dubai to unlock the full potential of its real estate sector.
According to Dr. Anosh, one of Dubai’s most significant 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 points out that it’s not just tax incentives that make Dubai appealing. The key factor lies in the city’s comprehensive support system for businesses. With top-tier infrastructure, such as world-class airports, seaports, and business parks, Dubai provides a seamless environment for companies to operate. Dr. Anosh stresses that such efficiency is crucial for any investment market to thrive.
Building an Investor-Friendly Environment
Anosh Ahmed believes that Pakistan can replicate Dubai’s success by focusing on creating an environment where investors feel secure and supported. He highlights the importance of clear, consistent regulations and legal protection for investors. In markets like the U.S. and Dubai, transparency and the ease of doing business are vital factors that drive investment. Dr. Anosh advocates for policies that ensure stability and minimize unpredictability, enabling businesses to make long-term investments without fearing abrupt policy changes.
Moreover, Pakistan’s infrastructure plays a significant role in attracting investments. Dr. Anosh stresses that the quality of roads, public transportation, power supply, and digital connectivity directly impacts a country’s ability to attract investors. Just like Dubai, Pakistan needs to improve its infrastructure to make the country a more attractive destination for businesses.
Support for the Real Estate Sector
Anosh Ahmed also emphasizes the need for government support to boost the real estate and construction industries. Real estate is a major economic driver—it creates jobs, stimulates demand for construction materials, and supports related sectors. If Pakistan offers incentives such as tax breaks for new projects or streamlines the approval process for real estate developments, the country could see a significant shift in investment trends.
Leveraging Technology for Growth
Another aspect that Anosh Ahmed highlights is the importance of leveraging technology in real estate. He points out that in the U.S., digital platforms have revolutionized the industry by making property transactions more transparent and efficient. By adopting smart technologies such as online property registries, automated approval systems, and blockchain-based land records, Pakistan could reduce corruption, enhance efficiency, and improve transparency.
Dr. Anosh Ahmed’s Optimism for Pakistan’s Future
Despite the current challenges, Dr. Anosh remains hopeful about Pakistan’s long-term prospects. He believes that the country’s young, dynamic population, growing middle class, and untapped natural resources are the building blocks of future economic success. With the right policies and reforms, Pakistan can turn its real estate sector into an engine of growth.
However, he warns that time is critical. Countries like the UAE have shown how policy reforms and investor-friendly initiatives can lead to rapid economic development. Dr. Anosh urges Pakistan to act quickly to implement policies that simplify investment processes rather than complicating them. Delaying reforms will only push investors toward other markets.
The Path Forward for Pakistan’s Real Estate Sector
For Pakistan’s real estate sector to regain its strength, it must undergo bold, strategic reforms that foster stability, build investor confidence, and promote long-term growth. With proper policies in place, the sector can transform into a powerful engine for economic prosperity. Anosh Ahmed’s insights suggest that Pakistan has the potential to become a leading hub for investment, but only if it creates an environment where investors feel confident and secure.
By taking swift action and prioritizing growth, Pakistan can restore its real estate sector to its former glory, positioning the country as a competitive player in the global investment market.
