Govt Planning Tax-Free Real Estate Package For Overseas Investors

The federal government is preparing a tax-free real estate investment package aimed at overseas Pakistanis, with the proposal already shared with the International Monetary Fund for approval, according to official sources.

The initiative is being positioned as a major step to attract foreign inflows, particularly in dollars, while making property investment safer and more transparent for overseas investors. Authorities expect the package to be formally introduced as early as next month.

Officials say the plan focuses on simplifying procedures and removing long-standing barriers that have discouraged overseas participation in Pakistan’s real estate sector. The government believes that a more investor-friendly framework could revive construction activity and strengthen foreign exchange inflows.

As part of the proposal, new mechanisms such as escrow accounts are under consideration to ensure secure transactions. These accounts are intended to reduce fraud risks and bring greater transparency to property dealings, an issue that has historically affected investor confidence.

In addition, the government is evaluating the development of Real Estate Investment Trusts, aiming to create structured and regulated investment channels. Special investment zones are also being planned to promote construction and large-scale development activity.

Officials from the housing sector said that additional incentives and facilities will be offered specifically to overseas Pakistanis to encourage participation in the construction industry. However, these benefits are expected to be largely limited to tax filers, with little relief currently proposed for non-filers.

The plan also includes proposed adjustments to taxes on property transactions, which are currently awaiting approval from the IMF.