The 9th meeting of the Policy Board of Naya Pakistan Housing and Development Authority (NAPHDA) took place on November 6, 2024, at NAPHDA's Head Office in Islamabad. The meeting was chaired by Acting Chairman Major General Amer Aslam Khan HI (M), T. Bt (Retd). The meeting was attended by the Board Members viz., Mr. Anwar Hussain, Senior Chief, Ministry of Planning, Development, and Special Initiatives; Mr. Zafar Iqbal, Joint Secretary, Cabinet Division; Mr. Athar Sajid Khan, Joint Secretary, Finance Division; Mr. Waseem Bajwa, Deputy Director General, Policy and Planning Wing, Ministry of Housing and Works; Mr. Zaigham Mahmood Rizvi, Expert Consultant on Housing and Housing Finance, World Bank; Brigadier Sardar Javed Ashraf Khan (Retd); Mr. Asif Reza Sana, Director/Board Member, Bank of Punjab and senior officers of NAPHDA Head Office and Regional Offices. The Board unanimously approved the minutes of its 8th meeting and audited reports of accounts of the Authority. Mr. Zaigham Mahmood Rizvi elaborated, through presentation, the topics including (a) The Housing Landscape in Asia-Pacific Countries, (b) Challenges in Affordable Housing, and (c) the Establishment of a Real Estate Regulatory Authority (RERA) in Pakistan. The Acting Chairman presented the souvenirs to retiring members of the Board in appreciation of their valuable input for the betterment of the organization during their entire tenure. The meeting concluded with a vote of thanks to the chair.

Proposal aims to unlock billions in revenue by utilising underused state land The Special Investment Facilitation Council (SIFC) has initiated a plan to replace outdated government-owned single-story houses in Islamabad with high-rise buildings, potentially generating billions of rupees in revenue. Currently, government housing occupies large areas in various sectors, including F-6, G-6, and G-7, with many single-story residences allocated to federal secretaries and other senior officials.  According to a report published by Dawn, a recent study found that government houses in G-6/1 alone cover 86 acres, with vertical construction estimated to reduce the space requirement to just 9 acres, freeing up 77 acres of valuable land worth over Rs52 billion. The proposal aligns with recommendations from a research article on “dead capital” by the Pakistan Institute of Development Economics (PIDE), which caught the attention of SIFC. Following the report, SIFC sent a letter to the Capital Development Authority (CDA) seeking input on the feasibility of vertical development, specifically in G-6/1. The letter to CDA highlighted that underutilized government land in urban centers is a financial burden and an untapped economic asset. “Efficient land management is essential to meet urban demands and boost city development,” the letter stated, noting that high-rise projects could free up land and generate substantial revenue. According to the PIDE study, replacing the single-story homes with six high-rise structures could manage the current housing demand while freeing up valuable land.  “Countries like the UK and India have successfully adopted vertical housing strategies, and Pakistan could benefit similarly by creating a centralized database of state-held land and involving asset management experts,” the report added. Sources within SIFC noted that the current plan is in its preliminary stages, pending CDA’s feedback. The SIFC is expected to explore further steps after receiving the CDA’s views, with a focus on unlocking the economic potential of underutilized government land in Islamabad.

• Latest revision covers 12 new cities in addition to 44 previously included • FBR chief says valuation rates moderately revised upward • New rates expected to boost revenue, shift cash from real estate ISLAMABAD: In a move to bring property valuations closer to market rates, the Federal Board of Revenue (FBR) has raised property valuation rates to up to 80 per cent across 56 cities, aiming to boost revenue collection and redirect investment into more productive sectors of the economy. The new rates will take effect from Nov 1. This latest revision covers 12 new cities, including Bannu, Chiniot, Kotli Sattian and Ghora Gali. The government has already implemented several tax measures for the real estate sector in the latest budget. “The valuation rates were moderately revised upward,” FBR Chairman Rashid Mahmood Langrial said, adding that the valuation prices have been changed based on the type of property, its location and other variables. The tax authority has previously adjusted property valuations four times — in 2018, 2019, 2021 and 2022. The FBR began publishing updated valuation tables on its website late on Tuesday, and the tables for around a couple dozen cities were available until the filing of this report. These revised valuations will be used to calculate federal taxes such as capital gains tax (CGT) and withholding tax. Unlike in many other countries, where taxes are based on the transaction value, in Pakistan, the declared collector value is often significantly lower than the actual transaction price. The FBR collects withholding taxes under Sections 236C, 236K and 7E of the Income Tax Ordinance, as well as the 5pc federal excise duty imposed on property transactions in the last budget. Provinces have also raised district collector (DC) rates for property transactions. In the previous fiscal year, the FBR collected nearly Rs150 billion in advance income tax under Sections 236C and 236K for property transactions, though figures for revenue collected under Section 7E and other measures are not yet available. Since 2016, the FBR has been working to determine fair market property prices in major urban centres. In the provinces, valuation tables are typically issued by district collectors under Section 27-A of the Stamp Act of 1899. A senior tax official involved in the valuation revision process told Dawn that the increases were less dramatic than initially expected. “We have increased rates marginally, well below market expectations,” the official said, adding that mid-range plot values were used as benchmarks for updating prices. The official acknowledged potential errors in the valuation tables, which he said would be corrected once identified. Determining true transaction values has been a challenge for the FBR, as property prices can vary significantly between different societies and cities. The official also mentioned that, despite the government’s intention to shift cash away from real estate into productive sectors, transactions in many housing societies have stalled, with no clear evidence of funds being redirected. A World Bank study estimates that real estate transactions in a comparable economy to Pakistan could generate between Rs600bn and Rs700bn in tax revenue. However, the tax official estimated Pakistan’s actual collection to be roughly Rs200bn. Published in Dawn, October 30th, 2024

Owners of 1-5 marlas of land in urban areas and 1-10 marlas in rural areas to receive interest- free loans of Rs1.5m Punjab Chief Minister Maryam Nawaz Sharif launched on Wednesday the provincial government’s Apna Chhat Apna Ghar (our roof, our house) housing scheme. “There’s no place like home,” CM Maryam said. “Those who have their own home, their own roof, they don’t understand what it is like to be homeless.” The chief minister said that owners of 1-5 marlas of land in urban areas and 1-10 marlas in rural areas would receive interest-free loans of Rs1.5m from the Punjab government to build houses. For the first three months, landowners will not pay a single rupee, she added. Apni Chhat, Apna Ghar Project: CM reviews construction of 100,000 houses She outlined the structure of the loan, saying it would be paid back over a period of seven years. “There is no need to pay for the first three months. Those who take the loans will have to pay a maximum monthly instalment of Rs14,000.” “I have kept the instalments at Rs14,000 because people need to establish a monthly budget, pay children’s fees and utility bills and buy food and medicine,” the CM said. She further said that interested parties can fill out an online application on the PITB online portal.

The third consecutive virtual meeting was held between the Naya Pakistan Housing and Development Authority (NAPHDA) and Turkiye's Government Housing Agency, TOKI on 02.10.2024. The session was chaired by Acting Chairman NAPHDA, Major General Amer Aslam Khan HI (M), T. Bt (Retd), and senior officials from both organizations. Discussions focused on TOKI's role in urban renewal projects, their international initiatives, reconstruction processing, corporate strategies, and the development of permanent housing following the earthquake in Turkiye. Senior officials from various NAPHDA branches and regional offices also participated in the meeting.