Business leaders warn new tax and wage policies could stall investment and hurt retail recovery.

RAWALPINDI: July 20, 2025: The Rawalpindi Chamber of Commerce and Industry (RCCI) has called on the Punjab government to urgently review its recent decision to impose a 16% sales tax on commercial rent and grant arrest powers over minimum wage violations.

RCCI President Usman Shaukat expressed deep concern, stating that these measures will increase the cost of doing business, particularly for retailers and small tenants, and may deter investment across the province. He warned that the tax could drive legitimate businesses into the informal economy, weakening an already fragile retail and real estate sector still recovering from post-COVID shocks.

Highlighting the new minimum wage of Rs 40,000, Shaukat criticized the budget clause that allows the arrest of non-compliant business owners, calling it coercive and prone to abuse. While supporting fair wages, he argued that policy must reflect market realities, noting a sharp drop in inflation to 6%.

The RCCI urged the government to engage in dialogue with business stakeholders to revise these policies, thereby preserving industrial confidence and promoting job creation in Punjab.

Training initiatives in AI, construction, agriculture, and hospitality aim to equip Pakistani youth with globally competitive skills under CPTICE

Pakistan and China have formally agreed to initiate comprehensive joint training programs in artificial intelligence, construction engineering, agriculture, and hospitality management as part of the second phase of the China-Pakistan Economic Corridor (CPEC). The agreements were reached during a high-level visit from July 6 to 12, 2025, by Gulmina Bilal Ahmad, Chairperson of NAVTTC and Pakistan-side Co-Chair of the China-Pakistan TVET Industrial Centre of Excellence (CPTICE) (Dawn).

During the mission, Pakistani delegates held strategic working sessions at Pakistan’s embassy in Beijing, collaborating with entities such as CIIC and Tang International Education Group. They agreed to jointly develop curricula, link vocational institutes with industry partners, and launch hands-on training initiatives tailored to Pakistan’s evolving labor demands.

Key outcomes include signing an MoU with Anhui College to establish the China-Pakistan Huijiang Workshop, complete with training facilities and residential space for Pakistani instructors. In addition, a new China-Pakistan High-Skilled Talent Training Center is set to be launched in collaboration with the Zhejiang Institute, focusing on smart manufacturing and e-commerce capabilities 

Notably, the delegation initiated mechanisms for the mutual recognition of vocational certifications with Saudi Arabia and Oman, thereby opening new employment pathways for Pakistani workers abroad.

 Why It Matters

These initiatives, backed by the official CPTICE framework, aim to strengthen Technical and Vocational Education and Training (TVET) across Pakistan. By aligning training with global industry standards and creating cross-border certification systems, the collaboration supports youth employment and enhances Pakistan’s talent readiness for CPEC-driven industrial growth.

This partnership marks a pivotal step in building a knowledge-based workforce poised to participate in mega infrastructure, energy, and technology projects under CPEC Phase II.

As Pakistan’s economic landscape shifts, a unique investing moment emerges for expatriates to secure premium homes and investments back home.

Amidst robust economic reforms and stabilizing remittances, One Homes declares 2025 as a “golden window” for overseas Pakistanis looking to invest in property in Pakistan (onehomes.com). With a dramatic uptick in inflows, over $4 billion in March alone, confidence is soaring, and One Homes is capitalizing on the growing demand from expatriates seeking legacy-building investments.

Industry insiders note that this surge coincides with Pakistan’s improving infrastructure, enhanced regulatory frameworks, and investor-friendly policies, including tax breaks and easier repatriation of funds. One Homes has positioned itself at the forefront, offering luxury apartments, mixed-use developments, and serviced residences that cater to both homebuyers with return aspirations and rental yield seekers (onehomes.com).

Executives emphasize that Pakistan’s major urban centers Islamabad, Lahore, and Karachi are transforming into high-growth zones, making them attractive for capital appreciation and passive income. With its global partnerships and premium developments, One Homes maintains that “the best time to invest is now.” (onehomes.com)

As digital documentation and streamlined processes make cross-border purchases smoother, overseas Pakistanis are advised to act swiftly to benefit from 2025’s favorable financial and structural environment.

New measure aims to align reported property values with market realities but draws criticism from real estate experts

The Federal Board of Revenue (FBR) will require individual taxpayers to declare the Fair Market Value (FMV) of all immovable properties—such as plots, homes, apartments, or commercial units, during purchase, sale, or existing holdings, starting July 1, 2025, for the 2025–26 income tax year (brecorder.com). This directive, issued via SRO 1213(I)/2025 on July 7, mandates manual entry of FMV even if the return system auto-fills previous data, with incomplete filings risking invalidation (timesofkarachi.pk).

However, real estate expert Muhammad Ahsan Malik has criticized the move as redundant, noting taxpayers already report purchase values and adding FMV may confuse the public and imply mistrust (brecorder.com). Malik also raised concerns about new filers being unfairly treated as late filers for property-related taxes and overseas Pakistanis facing hurdles in securing non-resident status certificates from Inland Revenue Commissioners—potentially pushing them toward corruption (brecorder.com).

Despite FBR’s stated goal of improving transparency and compliance, critics argue the requirement adds administrative burden and could deter property transactions, especially among overseas Pakistanis. The real estate industry is urging the FBR to refine the policy to balance oversight with efficiency and trust in taxpayer declarations.

Major provincial push to resolve Karachi’s chronic water shortages through dedicated pipeline and infrastructure development

The Sindh provincial cabinet, led by Chief Minister Syed Murad Ali Shah, on July 8 approved a Rs10.56 billion interest-free loan for the Karachi Water and Sewerage Corporation (KW&SC). The funding will be directed toward a dedicated water supply project serving Karachi’s Defence Housing Authority (DHA) and Clifton. The plan includes laying a 36-kilometer pipeline from Dumlottee, along with constructing a pumping station, forebay, and filtration plant. Initially greenlit by KW&SC in February 2025, the project is expected to wrap up within 11 months (brecorder.com).

This initiative aims to boost DHA’s current supply, which presently fluctuates between 4 and 5 million gallons per day, to more sustainable levels, providing relief to residents who have endured persistent shortages (tribune.com.pk).

During the same cabinet session, officials expanded flood relief funding, increasing support from Rs 21.56 billion to Rs 27.67 billion, benefiting over 151,000 farmers affected by the 2022 floods. A MOU was also signed, paving the way for the Benazir Hari Card, which will deliver agricultural subsidies, soft loans, and disaster assistance.

Additionally, the cabinet approved several development projects, including a Rs45 billion rail link for transporting Thar coal, amendments to streamline e-stamping and property transactions, and the establishment of industrial enclaves—demonstrating a strategic focus on infrastructure, governance, and rural development.

As part of its IMF-backed privatization drive, Pakistan plans a strategic joint venture to transform the iconic Roosevelt Hotel into a lucrative mixed-use development in the heart of New York City.

KARACHI, July 10. In a bold move to unlock the value of its foreign assets, Pakistan is seeking a $1 billion valuation for the historic Roosevelt Hotel in Manhattan, New York, with plans to enter a joint venture for its redevelopment. The hotel, owned by Pakistan International Airlines through an investment arm, has remained closed since 2020 amid financial losses.

According to a senior government official, Pakistan will retain ownership via an equity partnership but is open to selling a minority stake. Global real estate firm Jones Lang LaSalle (JLL) has been tasked with overseeing the transaction, which is expected to conclude within six to nine months.

Located near Times Square and Grand Central Station, the 42,000-square-foot property is considered prime Manhattan real estate. The redevelopment vision encompasses residential and office use, with an anticipated project timeline of 4–5 years.

Part of a $7 billion IMF-backed privatization plan, this initiative reflects growing investor interest in Pakistani assets abroad. The government anticipates receiving an initial $100 million by mid-2026 from the joint venture, marking a significant step toward economic recovery and enhanced global engagement.

Unrealistic property valuations based on outdated DC rates place an unfair burden on middle- and lower-income homeowners across Punjab.

LAHORE, The recent move by the Punjab government to impose property tax based on Deputy Commissioner (DC) rates has triggered widespread concern among citizens and real estate stakeholders. Experts warn that the decision to use artificially inflated DC rates—often disconnected from actual market values, will impose an unjust financial burden on property owners, especially those in the middle and lower-income brackets already grappling with inflation and stagnant wages.

The arbitrary nature of DC rate assessments fails to account for regional economic disparities, resulting in taxation that is not only unfair but also economically damaging. Urban hubs like Lahore, Multan, and Rawalpindi, along with smaller cities such as Dera Ghazi Khan, could experience a dip in housing affordability, real estate investment, and overall market stability.

Industry analysts and citizen groups are urging the provincial government to revisit this approach. They recommend establishing a more transparent, realistic property valuation model that reflects current market dynamics and is developed through consultations with real estate experts and taxpayer representatives.

Unless revised, this tax policy risks further alienating investors and homeowners, ultimately harming Punjab’s real estate and economic growth. Fair taxation must be grounded in actual data, not arbitrary estimates.

After Lyari Collapse Claims 27 Lives, ABAD Offers to Reconstruct Hundreds of Unsafe Buildings Across Karachi

Karachi, In a bold initiative to address Karachi’s growing urban safety crisis, the Association of Builders and Developers (ABAD) has offered to rebuild hundreds of structurally unsafe buildings across the city within 700 days, pending formal government approval.

Speaking at a press conference at ABAD House, Chairman Mohammad Hassan Bakhshi emphasized the urgent need for action following the tragic Lyari building collapse, which has reignited concerns over aging and unauthorized constructions. Joined by senior officials, Bakhshi revealed that around 700 buildings have been deemed hazardous and need immediate intervention.

ABAD proposed collaborating with technical bodies like NESPAK or NDMA to conduct a city-wide structural survey, with a focus on high-risk areas such as Lyari, Liaquatabad, and Delhi Colony.

The association has also offered to develop up to 100,000 affordable housing units in Karachi, modeled after Punjab’s recent housing scheme, if provided with institutional support.

Calling for transparency and regulatory reform, ABAD urged the inclusion of private sector voices in official inquiries and emphasized the need for accountability from both builders and regulators.

This landmark proposal places ABAD at the forefront of Karachi’s urban renewal efforts, signaling a rare and urgent opportunity for coordinated public-private action.

On-site offices and a crackdown on encroachments aim to expedite infrastructure delivery and enhance public trust in the development process.

The Chairman of the Capital Development Authority (CDA) and Chief Commissioner of Islamabad, Muhammad Ali Randhawa, has issued firm directives to accelerate infrastructure development across Islamabad’s residential sectors. In a high-level meeting at CDA headquarters on July 9, 2025, he emphasized the need to proceed with on-the-ground work promptly while maintaining high standards of quality and transparency. (zameen.com).

To enhance responsiveness, Randhawa announced that on-site offices will be established for the Deputy Commissioner, CDA, and other key officials in sectors currently under development. These local hubs will serve as direct points of contact for residents to address land grievances, submit documentation, and access vital information (zameen.com).

A significant focus of the meeting was addressing illegal encroachments in sectors H-16, C-15, C-16, E-12, and F-13. The CDA chief ordered a decisive crackdown on unauthorized constructions, urging residents with legitimate claims to register their properties promptly at these on-site offices (zameen.com).

Senior officials, including representatives from the Administration, Estate, Engineering, Finance, and Environment wings, DG Works, and Deputy Commissioners of Islamabad and CDA, attended the session. Chairman Randhawa reiterated that all bureaucratic and logistical hurdles delaying progress must be removed without delay (zameen.com).

With this directive-driven approach, CDA aims to transform Islamabad’s development model, making it faster, more transparent, and truly citizen-focused.

The revised fee structure raises concerns among buyers, investors, and realtors as the 3% rate sparks calls for protest and policy review.

Islamabad’s Capital Development Authority (CDA) has implemented a significant hike in property transfer fees, raising the charge from 1% to 3% of the property’s FBR-assessed value, effective July 1, 2025 (dawn.com). This sharp increase follows closely on the heels of a federal budget move that removed a 4% stamp duty and 1% registration fee on property transactions, affecting federal and rural jurisdiction properties (dawn.com).

While the CDA maintains that its adjustment reflects current market valuations, real estate agents have raised concerns. The Islamabad Real Estate Agent Association has condemned the move, labeling it “regressive” and pledging a protest on July 22 unless the fee is reversed (dawn.com). According to CDA, the title deed charge remains at 0.5%, and transfers involving family or inheritance have a reduced rate of 0.75% (zameen.com).

This new fee regime, applied across all CDA-administered zones, including commercial and residential sectors, marks the second-largest commercial real estate transaction change in Pakistan by rupee value and the third-largest by dollar value of its kind. Analysts warn that the higher costs could slow property deals, while buyers face heavier financial burdens.

 Key Highlights

• Effective from July 1, 2025
  
• The transfer fee is now 3% vs. prior 1%
  
• Title deed fees remain 0.5%; inheritance transfers are 0.75%
  
• Real estate agents plan a protest on July 22
  

What’s Next?

Stay tuned as industry leaders and the CDA engage on revised property policies and the future of Islamabad’s real estate landscape. For the latest updates on our projects, partnerships, and real estate developments, visit Chakor Ventures today.