Government may allow Rs.100 Million cash home purchases: Arif Habib

Renowned Pakistani stock trader and owner and founder of the Arif Habib Group, Arif Habib has confirmed that the government of Pakistan is fully supporting the country’s construction industry.

Talking on the ARY News program ‘On My Radar’, Arif Habib said that the Prime Minister of Pakistan has been supporting the promotion of the construction industry for several months, and various committees have been working on the issue.

He said that the government of Pakistan now has a clear understanding of the importance of the construction sector because of the industry’s potential for job creation, support to allied industries, and provision of housing to the public. Taxes associated with construction are also higher than those imposed on many other sectors.

Arif Habib said that the government has recognised the significance of the construction industry and is actively supporting it.

He claimed that during a meeting, the Prime Minister, Shehbaz Sharif, had reportedly said that every possible obstacle to the promotion of construction should be removed.

He emphasized that taxation is not the most critical factor for the construction sector. The primary requirement is the availability of mortgage financing, and people who buy houses do not have reconciled wealth.

Arif Habib said that following requests from stakeholders and the Association of Builders and Developers (ABAD), the Prime Minister said the government would consider allowing cash transactions for first-time home purchases of up to Rs. 100 million.

He added that according to his calculations, an investment of approximately Rs. 350,000 creates one job. If Pakistan undertakes public-private partnership projects worth Rs. 10 trillion to Rs. 15 trillion, substantial private capital currently available in the market could be mobilised.

He believes that there is significant investor appetite for such projects, which would stimulate numerous industries and generate large-scale employment opportunities.

‘We are willing to work closely with the Prime Minister to achieve these objectives, Arif Habib added.