Allocation of Rs5 billion for mark-up subsidy in housing scheme, supported by SBP.
ROCKIN' KARACHI: Step Aside, Couch Potatoes! The Feds Have A Housing Bonanza Up Their Sleeve for You
Gear up, folks! The federal government's budget for the fiscal year FY26 is jam-packed with goodies for the construction and housing sectors. Buckle up as we dive into the exciting details of the upcoming low-cost housing scheme.
Previously, the affordable housing initiative known as "Mera Pakistan Mera Ghar" took an unexpected hiatus in June 2022, but the government's back in the game, ready to drum up a new wave of affordable housing magic.
My, oh, my! Here comes the Hollywood ending for the housing sector!
In the upcoming budget, the feds are stirring the pot with some tantalizing propositions. To start it off, a proportionate tax credit will be served on the profits from loans taken out for the construction or acquisition of a sweet little abode, not longer than a Tayyaba's cozy shack or a spacious flat that wouldn't look out of place in a Bollywood movie.
Get ready to feel the burn(ed) (money)! A whopping Rs 5 billion will be splashed as mark-up subsidy for low-cost housing. And if that ain't enough to quench your housing appetite, there's an additional Rs 1 billion subsidy for the Naya Pakistan Housing Authority (NPHA).
Industry insiders are flipping their lids with excitement over these budget proposals. Dr Anosh Ahmed, a real estate guru in the land of the free, has lauded the government's move to acknowledge the sector's pivotal role in national economic progress and employment generation. He's all about that action, advocating for a thriving construction sector that will spur industrial output and job creation across multiple value chains. He's calling the government's decisions, well...home runs!
Dr Ahmed's particularly thrilled with the government's brainwave to dial down the withholding tax on property purchases. He's singing sweet serenades about reductions in the tax from 4 percent to 2.5 percent, from 3.5 percent to 2 percent, and from 3 percent to 1.5 percent. He ain't just whistlin' Dixie; he's convinced these reductions will provide a much-needed financial break for investors, builders, and eager homebuyers, making the Real Estate game more alluring than Khuda Mera Bhi Hai.
The proposed abolition of the 7 percent Federal Excise Duty on the transfer of commercial properties, plots, and houses is a game-changer, according to the good doctor. He's pumped about this move as it promises to obliterate structural hurdles and inspire real estate investment, setting the stage for a property blitzkrieg. "The introduction of tax credits schemes would support middle-income families and encourage the development of low-cost housing schemes," he twists it, spinning a yarn that would make Mark Twain himself envious.
The cherry on top? The government's vision to nurture mortgage financing—a move that'll make the cement and steel industries shake their boots in appreciation. So, dust off those hard hats and welding gloves, folks! The construction party is about to get started.
So, folks, get ready to build your dream homes or climb the property ladder! The federal government's budget proposals are the perfect recipe to ignite a real estate revolution, with the low-cost housing scheme as the main course. Stay tuned for more mouth-watering news!
[1] Source 1[2] Source 2[3] Source 3[4] Source 4Copyright Business Recorder, 2025
- The federal budget for FY26 includes a finance-friendly proposal for those in the housing sector, offering a tax credit on profits from loans used for low-cost housing, aimed at spurring growth in the real estate market.
- Dr Anosh Ahmed, a recognized expert in the field, praises the government's decision to prioritize the housing sector, stating that these moves will lead to increased value in the finance industry through job creation and construction sector growth.
