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The government’s decision of preventing non-filers from purchasing property worth more than Rs 5 million is severely denting the real estate sector. The real estate market had been struggling due to the government’s condition. But now after the ban withdrawn, the property gurus predicted the boom again in the sector with the foreign exchange from overseas Pakistanis.
The restriction was imposed by the previous government in April. Former finance minister Miftah Ismail announced the ban, which was applicable from the 1st of July this year.
The overseas Pakistanis protested against the ban as the ban has prevented them from purchasing property in their homeland. These expatriates are not entitled to pay taxes in Pakistan as they’re already paying their taxes in the residing country. Prioritising the interest of overseas Pakistanis and the country’s economy, the government has decided to lift the ban.
Statistically, figures indicate that Pakistan gains around 40% to 50% of total remittances in the real estate sector. The country received around $8-10 billion of total remittances of $20 billion in real estate and property segment from expatriates.
The ban not only affected overseas Pakistani but also local buyers, resulting in the slow down of business. As the government has reversed its decision, the seized investments from overseas Pakistanis will be resumed and the real estate market is expected to pace up once again.