Islamabad – Finance Minister Muhammad Aurangzeb has announced a major housing relief package for people looking to buy their first home. Speaking in the National Assembly, he introduced a new 20-year loan scheme aimed at helping first-time buyers purchase residential properties with long-term financial support.
According to the minister, the new law will not apply to properties worth up to Rs. 50 million, plots worth up to Rs. 100 million, or vehicles priced up to Rs. 7 million. This move is expected to benefit middle-income citizens and promote housing development across the country.
In addition, the government has updated the withholding tax policy. Properties bought before July 1, 2024, are currently subject to 4.5% to 6% tax. However, if a property is used for more than 15 years, it will now be exempt from withholding tax. This aims to encourage long-term ownership and reduce tax pressure on homeowners.
The minister also highlighted progress in empowering women through financial support. So far, 193,000 women have received loans under various schemes, and in the next phase, an additional Rs. 14 billion will be provided to further support women borrowers.
Moreover, the government is offering tax credit facilities on buying flats or building houses. Officials shared during a finance committee meeting that buyers of flats up to 2,500 square feet will qualify for tax credits. This move is expected to make property ownership more affordable.
Under the mortgage financing scheme, buyers can also claim up to 30% tax credit on interest paid. These new incentives reflect the government’s efforts to make home ownership easier and more achievable for the average Pakistani family.