ISLAMABAD – The federal government of Pakistan has prepared a new tax-free real estate investment package aimed at attracting overseas Pakistanis, officials said on Thursday. The initiative is part of efforts to simplify property investment, make it more transparent, and encourage inflows of foreign currency amid global economic uncertainties.
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Sources in the Ministry of Finance said the package is designed to remove barriers and complexities that currently limit investment, while offering a secure and investor-friendly framework for overseas Pakistanis. The government has shared the proposed plan with the International Monetary Fund (IMF) for approval.
Key features of the package include the establishment of special investment zones to boost construction and real estate development. Authorities are also considering introducing Real Estate Investment Trusts (REITs) and escrow accounts to enhance financial security and reduce fraud in property transactions. The escrow system is expected to ensure transparency and protect investors.
Officials from the Ministry of Housing and Works highlighted that the package will provide additional facilities and incentives specifically for overseas Pakistanis, with an emphasis on supporting tax filers. Non-filers are not expected to receive significant relief under the initial framework.
The government plans to formally launch the package next month, coinciding with efforts to attract foreign investment amid the ongoing tensions in Gulf countries following the Iran conflict.
The real estate initiative comes as Pakistan continues discussions with the IMF to secure a $1.2 billion tranche under the current economic program. The IMF has shared a draft of the Memorandum of Economic and Financial Policies (MEFP), signaling progress in unlocking funds and stabilizing Pakistan’s economic outlook.
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Overall, the package aims to create a safer and more attractive environment for overseas Pakistanis and foreign investors, strengthen the real estate sector, and support broader economic growth while leveraging inflows of dollars to stabilize the country’s financial position.