Prime Minister Shehbaz Sharif is set to chair a pivotal meeting on February 11, 2026, to approve a groundbreaking housing growth package. This initiative aims to tackle critical challenges in Pakistan’s real estate sector, improve access to financing, and optimize the tax system to drive housing sector expansion. The meeting will review recommendations from a dedicated task force, focusing on long-term reforms and immediate relief measures.
- The government has prepared a relief package for the real estate and housing sector aimed at benefiting the public.
- The package, devised by the Ministry of Housing’s 11-member task force, includes significant tax revisions and recommendations to revitalize the sector, Express News reported.
- The task force’s proposals, presented to Prime Minister Shehbaz Sharif, suggest several measures to support the sector.
- Among the key recommendations are allowing the construction of three-story houses, offering full tax exemptions for first-time homebuyers, and reducing property transaction taxes.
- The task force has also recommended lowering the property sale tax from 4% to 2%, cutting the buyer’s tax from 4% to 0.5%, and eliminating federal excise duties on property transactions.
- Furthermore, the proposal includes providing housing subsidies for low-income individuals and offering loans for home construction with repayment periods ranging from 5 to 20 years.
- Prime Minister Sharif has scheduled a crucial meeting on February 3 to review the recommendations and make a final decision on the matter.
- Few days ago, the Punjab government decided to establish a Special Planning Authority to regulate urban and rural land use, aiming to curb the rise of illegal housing societies across the province.
Housing & real estate sectors: FPCCI proposes cut in taxes to single digits
According to the final recommendations of the task force, it has recommended waiver of sub section 2A of 236C pertaining to 7E declaration & approval by Commissioner, provide basic exemptions for properties valued at up to Rs 10 million, shifting non-resident verification to an online system via NADRA and uniform rate for filers and late filers to remove disparities. The task force has further recommended abolishing section 7 E of the Income Tax Ordinance; standardizing and rationalizing stamp tax rates across provinces and ICT, abolishing CVT in Islamabad and ensuring uniform taxation policies through the National Tax Council and waiver of wealth reconciliation for investment in real estate and construction sector up to Rs. 50 million. The task force has further recommended revision of property valuations every three years to reflect market prices and introduction of exemptions for transaction tax for specific categories, such as low-cost housing, government plots, and first-time homebuyers.
The short-term recommendations of the task force also included reduction in policy rate to single digit; resuming the MPMG Scheme to restore developer confidence; reintroducing mark-up subsidies for low-cost housing loan; launching awareness campaigns and financial literacy programs to educate consumers; collaborating with real estate developers to offer mortgage financing options and implementing low /fixed-term loans for periods like 5, 10, and 20 years. The Punjab government aims to inaugurate the project. However, the exact timeline depends on how quickly the Planning and Development Board approves the additional funds required for the finishing touches, including electrification and advanced tolling systems.
CONCLUSION: A Game-Changer for Pakistan’s Housing Sector in 2026. The housing growth package unveiled by PM Shehbaz Sharif has the potential to revolutionize Pakistan’s real estate industry. By simplifying tax systems, improving financing options, and promoting affordability, this initiative addresses critical challenges and paves the way for long-term economic growth. The housing growth package unveiled by PM Shehbaz Sharif, in collaboration with the Ministry of Housing and Works, marks a transformative step for Pakistan’s real estate industry. If implemented effectively, it could attract significant investment, boost homeownership rates, and contribute to a more robust housing market.
