DLP Report
PESHAWAR
The Chairman of Federation of Pakistan Chamber of Commerce and Industries (FPCCI) Khyber Pakhtunkhwa chapter Haji Muhammad Afzal emphasized the importance of the construction and housing sector as the backbone of Pakistan’s economy.
In a statement, he highlighted that 72 industrial sectors were directly linked to the construction industry in Pakistan, which creates employment opportunities and drives economic growth.
To revitalize the housing sector and prevent capital from flowing abroad, Haji Afzal proposed measures to tap into the sector’s $100 billion investment potential.
He stressed the need for immediate government action to restore livelihoods and foster development.
Haji Afzal recommended that the government reduce the holding tax on property transactions and exempt the purchase of first properties from tax to encourage homeownership.
Additionally, he suggested the abolition of the 3pc Federal Excise Duty (FED), which he argued cannot be effectively implemented at the provincial level and is placing an unnecessary burden on the sector.
He also called for the elimination of the “deemed income” concept, which he identified as a major bottleneck in the housing sector’s development.
He urged the government to introduce a 10-year fixed-rate mortgage product, linked to the 10-year PIB bond yield, to make homeownership more affordable for the public.
Haji Afzal emphasized that the government should encourage banks to prioritize the construction sector as a key driver of economic development, which would have a large-scale positive impact on the economy.
