Sialkot Chamber Calls for Urgent Reforms in Pakistan’s Construction Sector

Sialkot: The President of the Sialkot Chamber of Commerce and Industry (SCCI), Mr. Ikram ul Haq, has underscored the urgent need to rejuvenate Pakistan’s construction industry, a critical sector intertwined with 72 other industries, forming a substantial part of the national economy. He stressed that revitalizing this sector could unlock $100 billion in investments and create millions of jobs, which are crucial for sustainable economic recovery and growth.

According to a statement by Sialkot Chamber of Commerce and Industry, Mr. Ikram ul Haq advocated for several key reforms to stimulate the construction industry. These reforms include reducing the withholding tax on property transactions to 1% and eliminating taxes on the first property purchase to promote homeownership. He also urged the removal of the 3% Federal Excise Duty, viewed as an unnecessary burden, and called for the repeal of Section 7E of the Income Tax Ordinance, which has impeded growth.

Mr. Ikram ul Haq further suggested the introduction of fixed-rate mortgage products linked to the 10-year PIB bond yield to enhance housing affordability. He also recommended that banks classify construction financing as a priority sector to stimulate broader economic development.

Highlighting the sector’s interconnectedness, Mr. Ikram ul Haq pointed out its links with industries such as cement, steel, ceramics, and advanced technologies. He emphasized that this interdependence is pivotal in driving industrial growth, attracting investment, and creating employment opportunities.

He reaffirmed SCCI’s commitment to collaborating with the government and policymakers to implement these reforms. Mr. Ikram ul Haq concluded by expressing optimism that rejuvenating the construction sector would significantly contribute to national development and prosperity.

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