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by utilising underused state land The Special Investment Facilitation Council (SIFC) has initiated a plan to replace outdated government-owned single-story houses in Islamabad with high-rise buildings, potentially generating billions of rupees in revenue.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.

Baku, Azerbaijan – Chief Minister Sindh, Syed Murad Ali Shah, showcased the remarkable achievements of the Sindh People’s Housing for Flood Affectees (SPHF) program in a keynote address, positioning it as a global model for climate-resilient reconstruction. A humanitarian housing program larger than the population of 154 countries captured global attention at COP29 today, In a landmark address at a conferecnce A Blueprint for Global Resilience COP29 regarding the Sindh People’s Housing for Flood Affectees in Pakistan Pavilion, Baku, Azerbaijan Murad Ali shah stated that SPHF unveiled its revolutionary approach to climate-resilient reconstruction. At a landmark panel discussion in the Pakistan Pavilion titled, “Sindh People’s Housing for Flood Affectees: A Blueprint for Global Resilience,” international development leaders explored how this Government of Sindh initiative has redefined the parameters of post-disaster recovery and community rebuilding. Chief Minister Murad Ali Shah emphasized that the project is inspired by the vision of Chairman Bilawal Bhutto Zardari, with a mission to build resilience for flood-affected communities. Shah highlighted several key milestones: Currently, 2.1 million homes are being constructed. Over 1 million bank accounts have been opened, facilitating 810,000 disbursements to families affected by floods. In Sindh alone, 300,000 climate-resilient houses have already been completed. The next phase will focus on enhancing Water, Sanitation, and Hygiene (WASH) facilities, with 60,000 resilient settlements currently in progress. In a gesture of gratitude, a flood-affected village has been named after UN Secretary-General António Guterres, recognizing his support. CM Sindh expressed his sincere appreciation to the global community for their unwavering assistance. The keynote address was followed by a high-level panel discussion featuring: * Mr. Khalid Mehmood Shaikh, Chief Executive Officer of SPHF * Ms. Xiaohong Yang, Deputy Director General, Central and West Asia Department, Asian Development Bank * Dr. Issa Faye, Director-General, Global Practices and Partnerships, Islamic Development Bank * Dr. Valerie Hickey, Global Director for the Environment Department, World Bank Beginning the session, Ms. Xiaohong Yang, when asked about the inclusion of technology and transparency in the project’s execution, said, “It truly deserves outstanding applause. The transformational digitalization through the MIS mechanism means that anywhere, anytime, we can see how funds are being spent and how many facilities are being built. We know the exact number of women beneficiaries and are working to create a resilient system for future floods by including community input in the project design. This strategy of transparency adopted by the Government of Sindh leadership has accelerated the efficiency of the project tremendously.” The initiative’s cutting-edge Management Information System (MIS) has revolutionized aid distribution through direct beneficiary transfers, eliminating intermediaries and setting new global benchmarks for transparency in humanitarian assistance. Addressing what motivated the Islamic Development Bank (IsDB) to support the SPHF initiative, Dr. Issa Faye stated, “It is in our charter to show solidarity and support the countries of our Ummah. We need to deliver for the people of Pakistan. Our strategy is based on two pillars: one, green, sustainable infrastructure development-building resilience-which completely aligns with this project; and second, human capital development. These two pillars provide the framework to support this project. Beyond this, we have witnessed the deep commitment from the Sindh government toward rehabilitating rural Sindh, reaffirming our ongoing support.” SPHF’s pioneering approach extends beyond housing to comprehensive community rebuilding. Through innovative settlement-level planning, the program integrates GIS technology, household surveys, and community engagement to create climate-resilient villages. “In many ways, we view this initiative as more than a project. This is a miracle happening in Sindh province-for decades, there have been smaller floods in many countries, and governments have never figured out how to provide housing, Government of Sindh’s efforts are highly commendable in this regard. It’s not just about the house or bricks and mortar; it’s about the family living in that house-about families now living in 300,000 houses that have been built, finding independence. Through monsoons this year and previous, to know they are safe; their livelihoods are safe. This miracle is equivalent to a million job opportunities, financial inclusion, and security within the community. It’s allowed tens of thousands of women to open bank accounts and acquire land certificates safeguarding their future-they now have assets they can leverage,” Dr. Valerie Hickey expressed, sharing how the World Bank views large-scale housing initiatives like SPHF in building climate resilience for historically marginalized communities. Speaking on SPHF’s transformative impact as the world’s most significant post-disaster housing reconstruction effort, Mr. Khalid Mehmood Shaikh highlighted two major achievements: “First, the sheer scale of impact, reaching 15 million people, and second, the unprecedented advancement in women’s empowerment and financial literacy. When people with meagre financial resources were entrusted with $1,000 for rebuilding their houses, they demonstrated exceptional entrepreneurial skills. They opened bank accounts, withdrew money, made informed decisions about materials and masons, and built remarkable houses that we now see across Sindh. This proves that when people are empowered to manage their resources, it opens doors not just for housing, but for their overall prosperity, health, and education.” The discussion at COP29 highlighted how SPHF’s multi-hazard-resistant housing aligns with climate adaptation goals while also driving economic growth, women’s empowerment, and social transformation. Panellists emphasized that the initiative not only rebuilds communities but transforms them, offering a replicable model of climate resilience. By integrating technology, community engagement, and sustainable practices, SPHF has set a global benchmark for disaster recovery efforts.

Islamabad: Federal Interior Minister Mohsin Naqvi’s directives have accelerated progress on key infrastructure projects in the capital, with round-the-clock operations now underway. The Chairman of the Capital Development Authority (CDA), Muhammad Ali Randhawa, visited the Serena Chowk and Jinnah Avenue F-8 Interchange construction sites early Tuesday morning to oversee the pace and quality of work. Randhawa inspected ongoing construction and instructed contractors to adhere strictly to deadlines during his visit. He emphasized simultaneous work on multiple sections, including the commencement of the Jinnah Avenue flyover, to expedite project completion. Read: CDA seeks Chinese expertise to update Islamabad Master Plan “The pace of progress must accelerate, and all work should meet the highest quality standards,” Randhawa stated. He also directed the immediate relocation of utility lines to avoid delays. The chairman acknowledged the hard work of laborers on-site and praised their efforts, reaffirming the CDA’s commitment to timely project delivery. A detailed briefing during the visit confirmed that all activities are proceeding on schedule. Read: CDA signs accord for afforestation projects covering 700 acres Deputy Commissioner of Islamabad Irfan Memon, alongside CDA officials, contractors, and consultants, joined the site inspection to ensure coordination among all stakeholders. Minister Mohsin Naqvi is overseeing these projects to ensure their efficient and timely completion. His proactive involvement underscores the government’s dedication to improving Islamabad’s infrastructure and easing traffic congestion for residents. Read: CDA plans to lease key service roads for international food chains, rest areas These projects, once completed, are expected to enhance the city’s connectivity and urban mobility. https://www.zameen.com/news/naqvis-directives-boost-infrastructure-progress.html

Peshawar: A significant relief for property owners in Peshawar is on the horizon as a government committee has recommended abolishing the controversial structure tax on buildings. The finalized proposal now awaits approval from Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur. The structure tax, introduced in 2016 by Peshawar’s then-deputy commissioner, led to a sharp decline in property transactions due to its high rates. Before its imposition, property transfers generated PKR 620 million annually, but revenues plummeted to just PKR 60 million. Read: KP launches interest-free loans for small businesses, house construction The committee, led by the Senior Member Board of Revenue (SMBR) and comprising key stakeholders, reviewed the tax and deemed it illegal under the Stamp Act of 1899. The tax, limited to municipal areas and later extended to Mardan and Nowshera, excluded Peshawar Development Authority (PDA) zones. According to reports, the tax was implemented based on recommendations from the Federal Board of Revenue (FBR). Public backlash prompted actions against it, leading to the formation of a review committee. The committee has proposed abolishing the tax and recommended a six-month exemption from the deputy commissioner’s rate to boost property transactions and revitalize the real estate market. The proposal now lies with the Chief Minister, whose approval could mark the end of the unpopular tax and bring much-needed relief to property owners and buyers. If enacted, the move is expected to revive property transactions and boost revenue generation across the region. Read: Land ownership goes digital in KP: CM launches Jaidad Card for citizens This recommendation signals a proactive step toward reforming property tax policies and revitalizing Peshawar’s real estate sector. https://www.zameen.com/news/peshawar-may-scrap-structure-tax-on-buildings.html

IHC had ruled the plot allotment scheme for retired judges and senior bureaucrats unconstitutional. The Supreme Court has overturned the Islamabad High Court's (IHC) decision regarding the allotment of plots to judges and bureaucrats in sectors F-14 and F-15 of Islamabad. The apex court, while announcing the reserved judgment on the case, accepted the appeal of the Federal Government Employees Housing Authority. The court also directed the Islamabad High Court to review the matter again. A three-member bench, led by Justice Muneeb Akhtar, had reserved the judgment on May 21. Justice Ayesha Malik, a member of the bench, delivered the brief reserved judgment. The Islamabad High Court had previously declared the plot allotment scheme for retired judges and senior bureaucrats in sectors F-14 and F-15 unconstitutional. The reserved judgment on the case was announced after six months. Previously in may the Supreme Court reserved its judgment on petitions challenging the IHC verdict that annulled the new policy of allotting government plots to civil servants, generals, and journalists in sectors F-14 and F-15 of the federal capital. The court also allowed parties to submit written submissions within the next three weeks, if desired. Around 35 serving and retired government employees had appealed the IHC's ruling. On February 3, 2022, former IHC Chief Justice Athar Minallah, while hearing a petition filed by Ednan Syed and others against the Federal Government Employees Housing Foundation (FGEHF), had struck down the new policy. This policy aimed to allot plots to civil servants, judges, generals, and journalists in the federal capital. The IHC had ruled that the revised policy and the related scheme for sectors F-12, G-12, F-14, and F-15 violated public interest and infringed upon the constitutionally guaranteed rights of the general public. Additional Attorney General Aamir Rehman also voiced opposition to the IHC judgment, stating that a Supreme Court bench had previously ruled in favour of using the housing society for public purposes. He noted that the High Court had upheld the decision of its single-member bench, thereby scrapping the entire scheme. The revised policy, he explained, was initially approved by the Federal Cabinet on the High Court's direction. Rehman further argued that the housing scheme did not result in any financial loss to the public, adding that the High Court had made its decision without notifying the Attorney General.