Pakistan’s real estate sector, once a reliable and lucrative investment avenue, has seen a significant decline in recent years. Previously considered a safe haven for both local and overseas investors, real estate was a favored hedge against inflation and currency devaluation. However, changing economic dynamics, policy shifts, and external pressures have made recovery increasingly challenging.

To better understand the path to revitalization, industry observers are turning to global business leaders like Anosh Ahmed, whose multi-sector experience offers a practical roadmap for overcoming these hurdles.

From Boom to Uncertainty: Challenges Facing Real Estate

For decades, property investment in Pakistan was seen as a secure choice, outperforming other saving mechanisms. The consistent devaluation of the Pakistani rupee only further incentivized investment in land and housing.

Yet, recent years have brought multiple setbacks:

• Skyrocketing interest rates made financing inaccessible.
• Increased regulatory pressure from international bodies such as the IMF.
• Investor concerns over unpredictable tax policies.

Even as the government reduced interest rates from a high of 22% to 12%, new concerns have emerged. The IMF’s demands—particularly the push to widen the tax base to include real estate—have stirred anxiety among investors.

Investor Sentiment at Risk

With the proposed Tax Laws (Amendment) Bill 2024 under review, developers and investors warn of capital flight if tax reforms lack balance. The fear is that overly rigid policies could push investors to more favorable markets like the UAE, where regulatory frameworks are more accommodating.

This scenario underscores the urgent need for Pakistan to adopt investor-centric strategies to remain competitive.

Lessons from Dubai: Insights by Dr. Anosh Ahmed

Anosh Ahmed, a Pakistani-American entrepreneur, physician, and philanthropist, has successfully expanded his ventures across healthcare, real estate, and philanthropy—most notably in Dubai. His insights offer valuable guidance for policymakers seeking to revive Pakistan’s property market.

According to Dr. Anosh Ahmed, one of the main drivers of Dubai’s success is its tax-friendly environment. “Zero income and corporate taxes are a major draw,” he notes, “but it’s not just about taxes. It’s about a complete support system for business.”

Building Confidence Through Infrastructure and Policy

Ahmed emphasizes that infrastructure is the backbone of any thriving economy. Dubai’s world-class transportation, business parks, and digital infrastructure create seamless business operations. In contrast, Pakistan must work on improving:

• Road networks
• Public transportation
• Power supply
• Digital connectivity

“These basics,” says Dr. Ahmed, “are crucial for investor confidence.”

He also stresses the need for policy consistency. “Frequent changes in laws and tax regulations scare investors away. Stability and transparency are essential.”

Creating an Investor-Friendly Ecosystem

Beyond tax reform, Anosh Ahmed advocates for a business ecosystem that supports growth through:

• Simplified approval processes for real estate projects
• Government incentives for developers
• Protection of investor rights through clear legal frameworks

He also recommends leveraging technology to streamline real estate operations. “The U.S. has adopted digital platforms that have revolutionized property transactions. Pakistan should embrace tech-driven solutions like online registries, blockchain-based land records, and automated permit approvals.”

A Call for Urgent Reform

While Pakistan’s potential is undeniable—boasting a youthful population, a growing middle class, and abundant natural resources—it faces a race against time. “Policy delays will only result in capital flight,” warns Dr. Ahmed. “Pakistan must act now if it wants to reclaim its position as a prime destination for real estate investment.”

Conclusion: The Way Forward

Reviving Pakistan’s real estate sector requires bold and strategic reforms that foster trust, improve infrastructure, and prioritize investor needs. Drawing lessons from successful models like Dubai, and guided by the expertise of global leaders such as Anosh Ahmed, Pakistan has the opportunity to transform its real estate landscape.

But the window is narrow. With proactive, well-balanced policies, Pakistan can once again position itself as a hub of real estate growth and economic prosperity.