Pakistan's construction industry says concerned at curbs on non-filers
Hassan Bakshi, Chairman, Association of Builders and Developers of Pakistan (ABAD), expressed these concerns while speaking to Business Recorder on Wednesday, highlighting the potential adverse impact on the construction sector's recovery prospects.
He said the primary concern is about the proposed restrictions that would bar non-filers from purchasing immovable property in Pakistan. He argued that such measures would create a negative impact on the construction sector that is already struggling to regain momentum.
According to Bakshi, ABAD has already engaged with Prime Minister Mian Muhammad Shehbaz Sharif regarding these restrictions. 'We have discussed it with the prime minister, expressing our concerns on the said restriction.'
He believed that the proposal was neither included under the IMF recommendations nor with the PM's consent, who has assured ABAD not to implement it. 'ABAD is planning a delegation visit to Islamabad next week to further discuss the matter with the high-ups,' he informed.
Rather than imposing pre-emptive restrictions, Bakshi suggested, allowing non-filers to purchase immovable properties, which would provide the government with comprehensive financial details of these individuals. This information could then be utilised to bring them into the tax net, which he believed would be a more inclusive approach for broadening of tax base.
Chairman ABAD warned that the enforcement of these restrictions could have far-reaching consequences beyond domestic markets. 'If the said restrictions were enforced, the construction sector, which is already facing negative growth for the last three years, won't see any healthy business activities in the coming financial year.'
Bakshi said that the measures would expedite the flight of capital, especially to Middle Eastern countries, which are now offering partnerships to our developers with their expertise, not investments.
He said that withholding tax on property purchases has been proposed to be reduced for the buyers, but the tax burden on sellers has been recommended to increase proportionally, adding that this approach would not create any positive impact, as it merely shifts the tax burden rather than reducing it.
Despite the concerns, the ABAD chairman acknowledged several positive proposals in this budget, including the introduction of tax credits to encourage mortgage financing and the reduction in stamp duty for Islamabad.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
7 hours ago
- Business Recorder
NBP Aitemaad Islamic branch in DHA Phase-II inaugurated
KARACHI: NBP Aitemaad Islamic Banking unveiled the new premises of Islamic Banking Branch in DHA Phase-II Karachi, catering to the diverse financial needs of the local business community while ensuring accessible and convenient banking services for the residents in the surrounding communities. By inaugurating this branch, NBP Aitemaad Islamic Banking reinforces its commitment to fostering economic growth and prosperity in the area. Rehmat Ali Hasnie, President & CEO NBP, Fouad Farrukh, SEVP & Group Chief, AIBG and Karim Akram Khan, SEVP & Group Chief, LCMG inaugurated the branch. Respected customers of the branch also graced the inauguration ceremony. The branch's opening signifies NBP Aitemaad Islamic Banking commitment towards the business community and providing exceptional banking services to all individuals. Copyright Business Recorder, 2025
Business Recorder
7 hours ago
- Business Recorder
The strait of no return
When US intelligence revealed that Iran had loaded sea mines near the Strait of Hormuz on July 1, it sent an unmistakable message to the West: Tehran is not backing down after US and Israeli airstrikes devastated its nuclear facilities. Although the Strait remains open, the mere threat of closure is enough to send ripples across global markets. The conflict might appear as yet another Middle Eastern flashpoint, but the trickle-down effects are going to be much worse. Asia's largest economies – China, India, Japan, and South Korea – stand dangerously exposed. Around 80% of their Middle Eastern oil passes through the Strait, an artery vital to global trade. Even a short disruption would send economic shockwaves beyond Tehran, Washington, or Tel Aviv. Vice President JD Vance recently pronounced the 'Trump Doctrine' in Ohio, redefining American foreign policy. The new doctrine prioritizes aggressive diplomacy and, if necessary, deploying overwhelming military force followed by a swift withdrawal. Iran's recent defiance near the Strait of Hormuz is already putting the Trump Doctrine on trial, testing how far Washington will go to enforce its red lines. Earlier, Trump demonstrated a tough stance, ordering airstrikes on Iran's nuclear sites, offering the first glimpse of how this doctrine might unfold. Yet, despite US escalation, CIA analyses indicate the Iranian nuclear programme was set back only a few months; not years, as Trump had claimed. The Pentagon, however, has shown prudence. Defense Secretary Pete Hegseth echoed Trump's optimism, whereas General Dan Caine, chairman of the Joint Chiefs, noted cautiously that 'all three sites sustained extremely severe damage and destruction,' though he stopped short of confirming the end of Iran's nuclear ambitions. Tehran retaliated by expelling UN nuclear inspectors, heightening fears of a renewed nuclear drive. Trump's foreign policy does not operate in isolation however. His aggressive stance abroad corresponds closely with domestic priorities articulated in the new 'Big Beautiful Bill,' a fiscal package designed to operationalize his doctrine by reinforcing energy independence and bolstering defense production, at the expense of domestic welfare. After overcoming resistance from Republican hardliners, the bill also includes $4.5 trillion tax cut, substantial hikes in defense spending, and dramatic increases in border security funding, offset by over $1 trillion in cuts from Medicaid and reductions in food assistance for low-income Americans. This strategy seems politically calculated: reassuring Trump's MAGA (Make America Great Again) base amid sliding poll numbers by projecting decisiveness abroad and economic insulation at home. Yet, such insulation remains a luxury Asia cannot afford. The implications extend far beyond Iran. Trump's new doctrine has alarmed other countries, especially those non-signatories to the Nuclear Non-Proliferation Treaty (NPT). Iran, despite being an NPT signatory, braved intense punishment, prompting justified caution in countries like Pakistan, a declared nuclear power outside the NPT framework. Recently questioned about potential threats against Pakistan's nuclear facilities, Pakistan's military spokesperson Lt. Gen. Ahmed Sharif Chaudhry firmly dismissed the possibility, stating unequivocally, 'There is absolutely no concern whatsoever in the military that Pakistan can become the next target.' He further warned that any attempt against nuclear-armed Pakistan would have 'horrific consequences.' Islamabad's cautious yet active diplomacy stems from strategic necessity, heightened by recent events. Only in January 2024, Pakistan and Iran exchanged missile fire across their shared 905-kilometer border, each accusing the other of harboring militant groups. But geopolitical tides shift swiftly; the sudden eruption of simultaneous regional crises, including Pakistan's conflict with India in May and the recent Israel-Iran hostilities, has unexpectedly brought Tehran and Islamabad closer than ever. Following the devastating Israeli strikes on Iran's nuclear sites, Pakistan swiftly condemned the aggression, calling it a violation of Iran's sovereignty and urging the UN to intervene. Foreign Minister Ishaq Dar publicly signaled Islamabad's willingness to facilitate negotiations, conveying Iran's openness to dialogue should Israeli hostilities cease. Although past mistrust, especially concerning border security and separatist sanctuaries, hasn't vanished overnight, the current environment of heightened tensions has created strategic congruence between these uneasy neighbors. Despite these tensions, it is pertinent to note that Pakistan's imports from Iran grew by 18% last fiscal year, indicating resilient economic ties between the two nations. According to Pakistan's Ministry of Commerce, imports from Iran reached $66 million in June 2025 alone, maintaining steady trade through geopolitical disruptions. Critical land routes, especially the Taftan border crossing, remain operational, essential for sustaining these imports. Total imports from Iran reached $1.222 billion from July 2024 to June 2025, reflecting growing demand for energy supplies, fertilizers, construction materials, and agricultural staples sourced from Iran. Experts highlight that energy imports, mainly refined petroleum and natural gas, account for over 40% of this trade. If Trump, under his renewed doctrine, deals with a heavy hand towards Iran, the resulting regional crisis can jeopardize not just Pakistan's energy security, but the stability of other Asian countries too. For China, a Hormuz closure would pose an immediate economic threat; around 90% of Iran's oil exports, over five million barrels a day, transit via Hormuz. Senator Marco Rubio, sensing the potential fallout in June, urged Beijing to persuade Tehran directly against closure, highlighting severe consequences for China's economy. Such vulnerability emerges at a moment when China's economic recovery remains fragile and Beijing is increasingly wary of Trump's unpredictable military assertiveness, especially following recent US actions in Iran and implicit warnings towards Taiwan. India also walks a tightrope. Despite diversifying energy sources from the US, Russia, and elsewhere, India still relies heavily on Middle Eastern oil, with approximately 35% passing through Hormuz. As energy analyst Vibhuti Garg notes, India remains critically tethered to fossil fuels. Closure of the Strait of Hormuz by Iran in retaliation could trigger inflation precisely when India's economy is recovering from recent shocks. Japan and South Korea import over 80% of their energy from abroad; they face even greater risks. Nearly 75% of Japan's oil and 70% of South Korea's crude transit Hormuz, according to France 24. South Korea's renewable energy share remains low at 9%, significantly behind the OECD's 33% average, leaving it especially vulnerable. Any disruption in Hormuz could rapidly choke manufacturing output and escalate consumer prices, dealing severe blows to these two major Asian economies. Trump's latest bill appears to reinvigorate his electoral base, although it would come at substantial political and geopolitical costs. Days after the strikes, Trump's approval ratings dropped to 44%, reflecting Americans' skepticism over US involvement in another Middle Eastern conflict. The administration's tough stance on Iran – backed by record defense spending – caters to voters who are hungry for strength abroad but wary of another endless war. While Tehran has historically issued threats to block the Strait of Hormuz, recent parliamentary support to block the strait have posed a real risk, albeit symbolic. Experts like Edward L. Morse of Hartree Partners suggest the threat is overstated given Iran's own economic dependence on open shipping lanes. Nevertheless, even symbolic actions dramatically raise the risk of miscalculation. Ultimately, Trump's muscular approach risks triggering instability he claims to prevent, potentially forcing nuclear-armed non-NPT states like Pakistan into defensive postures, further complicating global security. The Trump Doctrine favors swift strikes and rapid withdrawals, but the Strait of Hormuz cannot be so easily attacked without mitigating the consequences. Asia, heavily dependent on Middle Eastern oil, now faces potential economic turmoil; collateral damage from a geopolitical gamble that has, even before full escalation, already gone too far. (The writer is an educationist and an economist) Copyright Business Recorder, 2025
Business Recorder
7 hours ago
- Business Recorder
Karachi's urban landscape collapsing institutionally
EDITORIAL: For all the death and despair it caused, the Lyari building collapse may finally have shaken the system into some action. At least nine neighbouring buildings have been marked for evacuation and demolition. A five-member committee has been formed. And for once, even the Sindh governor has publicly promised consequences and compensation. But if this tragedy is going to be a turning point, it'll have to do much more than trigger temporary outrage and a few token demolitions. This wasn't just a random structural failure. It was criminal negligence, facilitated by a culture of impunity that extends from corrupt developers to complicit regulators. The Association of Builders and Developers (ABAD) has pointed to a systemic rot – unsafe, unauthorised constructions spreading across Karachi, aided by kickbacks, ignored violations, and an administration that turns a blind eye. In fact, 12 building collapses in recent years have already killed at least 150 people. How many more have to die before this is called what it is: manslaughter by design? Even now, residents of the affected area are protesting. Not because they want to live in crumbling buildings, but because the state has given them no safe alternative. Many of them paid for these homes with everything they had – only to be told their properties were never legal, never safe, and now being bulldozed without compensation or relocation plans. It is impossible to ignore the human cost of this breakdown. And it's even harder to ignore that it stems from a chain of greed, from the illegal floor constructed with a bribe to the planning permission granted under the table. ABAD's press conference didn't pull punches. It revealed that MDA and LDA have collected more than Rs25 billion over seven years for housing schemes that were never delivered. It also accused government departments, police, and regulators of being fully aware of what's happening – and taking their cut anyway. And in what should be an indictment of the entire system, the chairman warned that many building owners now simply wait for their structures to collapse so they can reclaim the land and start afresh. The Sindh Building Control Authority (SBCA), of course, issued notices after the latest collapse, and has now started a safety drive. But the question must be asked: where were these notices before 27 people lost their lives? And where was the oversight when the building was being illegally modified, sold, and occupied? Now, the state is trying to present a more humane face. Governor Kamran Tessori has promised 80-square-yard plots, six months' rent, and ration supplies for displaced families. But even if all of that is delivered, which is a big 'if', it won't fix what's broken. Karachi's urban landscape is collapsing not just physically, but institutionally. This city has become a maze of unregulated growth, hollowed out by political patronage, administrative decay, and private profiteering. If there's any silver lining to be drawn from this moment, it's the sliver of urgency now visible across officialdom. But that will mean nothing unless it's followed by structural reform. ABAD has offered to help rebuild the unsafe buildings in 700 days and construct 100,000 homes if the government cooperates. If the state is serious, now is the time to test that offer. Karachi is still growing, still building – but mostly on lies, kickbacks, and unsafe foundations. Until there's accountability from top to bottom, from the man who fakes a building plan to the officer who signs off on it, the city will keep burying its poor under the rubble of its own corruption. Copyright Business Recorder, 2025
