Ordinance for the Construction Industry of Pakistan:
COVID-19 has stalled the economic activities across the globe. UN has stated that world economy is facing the worst meltdown since the Great Depression of 1930’s. The current economic crisis is termed as The Great Lockdown. Advanced economies are sending checks to their residents but third world countries are facing the social challenges due to the limited resources. To help the daily wagers, Pakistani Government has decided to kick start the construction activities in Pakistan. The government has just passed an ordinance for the construction industry of Pakistan.
Salient features of the Ordinance for Construction Industry of Pakistan:
Special Tax Provisions for Builders and Developers
- Income under this regime will be treated as a separate class of income, wherein tax will be computed on the basis of per square foot construction and per square yard land development for builders and developers respectively.
- No withholding tax on construction materials except for cement and steel.
- While declaring their net wealth builders and developers can take profit from projects up to ten times of tax paid.
- For low cost housing projects like Naya Pakistan Housing Program tax is reduced by 90%.
Exemptions from Provision of Section 111 of Income Tax Ordinance 2001 / EXEMPTION FROM DECLARATION OF SOURCE OF INCOME
- Applicable to existing incomplete projects and new projects starting before 31st of December 2020 but completed till 30 September 2022.
- Both new and existing projects would have to get registered with FBR by filing a prescribed form on IRIS web portal.
- The amount invested within this period should be declared in the wealth statement.
- However, public office holders, their benamidar, spouse and dependents cannot claim exemptions.
Capital Gain Tax (CGT)
- CGT holding period for constructed property is reduced from 4 years to 3 years.
- CGT holding period for plots remains 8 years, but the rate will be significantly reduced on sliding scale from fourth year onward.
Exemption of Taxes on First House
- Construction, purchase or sale of first house is exempt from all taxes including the Capital Gain Tax.
Tax Incentives by Provincial Revenue Authorities (PRAs)
- Sales Tax on builders will be levied by the provinces at the time of the sale of property at fixed rate of Rs 50 per square foot.
- Sales Tax on developers will be levied by the provinces at the time of the sale of property at fixed rate of Rs 100 per square foot.
- Low cost housings like Naya Pakistan Housing Scheme will be exempted from all provincial taxes.
- All provincial taxes (municipal taxes, duties, fees, registration fees and transfer charges) for urban properties will be clubbed under one head and charged at the rate of 2% of the property valuation.
- E-stamping system being introduced by all provinces.
FBR Valuation of Real Estate (Constructed Property and Plots)
- FBR has already initiated the process of fresh valuation of urban real estate.
Reduction in Sales Tax on Construction materials
- In order to bring down the cost of construction, sales tax and excise duties levied on construction materials will be reduced.
The Ordinance will fail to stop the property price crash:
Reason #1: No more dead Investment in Real Estate Sector:
Many people consider this relaxation as another amnesty scheme to whiten the black money; this is not true. This scheme is not for the people to trade the plots only. To avail this scheme people have to construct the plots. Secondly they will have to be filers to avail this scheme. FBR will check the transitions and will give time to the people to be filers. This scheme is different from the past amnesty schemes. Because no one can simply invest in plots. But this time they have to construct the plots.
Reason #2: Purchasing power of local Pakistanis has declined:
The first buyers of real estate in Pakistan are the local Pakistanis called the genuine buyers. But due to the lockdown people are worried about the survival of their families instead of investing in real estate. Millions of local Pakistanis have lost their jobs due to the economic meltdown caused by COVID-19. The purchasing power is down so prices will fall to match the low purchasing power.
Reason #3: Pakistani Expatriates Losing Jobs:
Historically the end buyers of luxury real estate are the Pakistani expatriates working in UAE, Qatar, Kuwait, Saudi Arabia, Europe, Australia, UK, USA and Canada. Millions of Pakistani expatriates have lost their jobs. The high real estate prices in Pakistan are in part due to the high purchasing power of the expertise. But when they are losing jobs then who will buy properties? Simply a big price crash.
Reason #4: Selling pressure of the desperate sellers:
Coronavirus has simply converted Pakistan into a cashless society due to the freezing incomes. Many people are willing to sell their properties to get cash but no genuine buyer in the market. There are more properties in the market than the buyers. Over supply of properties has already destroyed the real estate market of Dubai where prices have decreased to the level of 2008. Can we imagine a different outcome for Pakistan?
Reason #5: Pakistani property market follows the global trends:
Global economy is already in recession thanks to the Corona Virus. World is facing the worst mortgage payment and foreclosure crisis. Property prices are crashing worldwide; so a re-run of 2008 events but on a larger scale. If we observe the real estate trends of 2008, Pakistani and Dubai Real Estate Markets were the worst hit markets in the world. The situation will be even worst this time as financial crisis is more severe. Therefore get ready for a big price correction across the world and Pakistan.
Ahmad
on said
Anwar Bhai
You know I respect you a lot because of your assessment about real estate at that time when everyone in market had different opinion of real state. However I am unable to understand about your opinion about Imran Khan. Let me put in this way what other options do we have either Nawaz Sharif or Asif Zardari which one would you pick and keep in mind they are in power since late 80s. I am not supporter of IK but what other option I have. As a Karachite all three disappointed us one way or another.
ANWAAR UL ISLAM
on said
Ahmad
Let me explain;
Leaders are known by their achievement not by words;
Pakistanis love Tipu Sultan but hate Akbar the Great.
Tipu was very brave and patriot but can we describe a single achievement of Tipu Sultan?
Whereas Akbar never lost a single battle. Defeated 40 kingdoms to create the mighty Mughal Empire from Kabul to Dhaka.
Mughal Empire was the mightiest and richest nation of the world by 1700.
We all like Imran Khan but a question?
What IK has changed in Pakistan?
Corruption is same. Money laundering is same.
Pakistani GDP is down, rupee is down, economy is down. Millions of people have lost jobs in last 2 years.
Reality is Imran Khan has totally disappointed the nation.
Pakistan is seeking another $15 billion loan.
The biggest crime of IK is that he has failed to reform the tax system by giving useless amnesty schemes.
He still has the time to introduce an excellent tax collection system in the coming Budget 2020-2021.
If IK fails then he is worthless.
Muhammad azeem uddin
on said
Dear anwar bhai,
If you think like this then you never become PM of Pakistan, you must change your ATTITUDE and say you will allow to buying and selling real estate any source of the money , for at least 20 years.
And for poors can get 2 crore job and 1 crore homes , and revenue collection 10,000 Billion rupees, then you become QUALIFY for next PM.
Nowadays their is hunting new PM post of Pakistan ,and shahid afridi is on WARM UP !!
May be next name comes on lucky draw for him
ANWAAR UL ISLAM
on said
Muhammad Azeem Uddin
Well said
Jamshed
on said
Anwaar
Imran Khan has destroyed the economy and is now taking desperate measures without any insight. He thinks that black money holders will invest to boost the economy in the current situation. He has basically cheated not only his voters but also has torn apart his manifesto and he will further ruin the economy. He is a wrong man for this job.
zahid ali
on said
https://www.dawn.com/news/1561161
Today khurram hussain wrote a column in dawn and he emphasized that construction package given by government is not for construction, rather this package again will help in increasing speculation in plot and flat files. He pointed out that cement sale was plunged by 37% in the month of May 2020, however the construction package was announced in early April, and the prime minister said work should begin by April 14. What a disaster. If another rally of speculation is started then where the price will go.
ANWAAR UL ISLAM
on said
Zahid Ali
Imran Khan is the most stupid ruler in the history of the world, a mere pawn in the hands of corrupt mafia.
If collecting revenue is the only aim of Imran Khan then it can be done in a single month.
HOW?
Issue new currency notes.
Why?
Because 70% Pakistani economy is black economy.
People will be forced to change the currency notes otherwise money will be worthless.
If they can’t show the source of income then government can confiscate their money.
Within a month IK can collect trillion of rupees.
Hard luck for Pakistanis as we have such a stupid ruler who has helped the rich people on the name of poor.
Muhammad azeem uddin
on said
Dear jamshed bhai,
The usa friend really good luck, but he did not looted buyer . The buyer have made it 200 square yard portions, it was a corner plot , so on ground floor their are three portions and same as first and second and each floor price is 140 lakh , because the plot is located just next road of main road.
So I think buyer have also make money and it was win win situation.
If the real estate return is higher than business then one why take risk and do business, this is major reason people dont prefer do business and eager to invest real estate.
Jamshed
on said
Muhammad azeem uddin
I think your USA friend is very clever and lucky. The buyer was looted unfortunately. The prices u have quoted are unrealistic. Real estate agents try to pretend that market is stable but real estate market is in real crisis . Do not purchase now but if u want to purchase , buy at 60 to 70 percent below the the peak prices. Because this much fall would definitely occur.
I would advise the readers , please do be a victim of those real estate agents who ask unrealistic and fake property prices which do not match with the economic indicators. In whole world, real estate market goes up and down in accordance the the growth and economic fundamentals. In UAE and rest of the world property prices are 60 to 70 percent low the peak prices.
Muhammad azeem uddin
on said
Zahid bhai,
Actually their is no other option other than scheme 33, for construction of new houses on affordable price.
The next option is gulshan e maymer.
But if we talk little develop area where no gas but electricity and water available then we have choices , pak scientists, merchant navy, capital, punjabi saudagar, Karachi university, pcsir, etc, here 120 square plot from 90 lakh to 120 lakh.
Gulshan e maymer 120 square yard 55 to 65 lakh.
Gulshan e usman 120 sq yard plot 50 lakh right hand after crossing Al habib Restaurant m9 if you travel from sohrab goth.
If someone advertising 120 square house double story gulistan e johar then it has touches katchi abadies or nala drainage. On normal location it is not available less than 180 lakh.
Where you go for buying cow , on that place plot where cutting and 120 sq yard plot 60 lakh and commercial plot 120 square 120 lakh. All are empty.no human livings.
Gulshan e maymer :Double story 240 sq yard new house sold one of my friend 135 lakh very hardly on 2018. At that time open plot rate 65 lakh , but day by day plot prices increased sharply as well houses now open plot 240 square yard 120 lakh to 140 lakh.
The main reason highly increased property scheme 33 and maymer as I find out that : THE BOOK VALUE RATE IS LOW SO IT IS IDEAL PLACE TO PARK BLACK MONEY,
However i request Anwar sb, put light on this subject.
If you want to buy home at karachi then you must need for 120 sq yard 130 lakh reasonable location , if you want compromise katchi abadies then you can buy 50 to 60 lakh
If you can compromise with out gas then you need 80 to 90 lakh , it is double story price.
Finally, you are educated , then you calculate GDP, economy, remittances, debt to GDP, government borrowing, public returning from uae, saudi arabia, and IK govt performance, then marshallah govt , then you look and predict, but if your children say they need a home for living Zahid sb,parent only have option to require of the above money otherwise KEEP SILENT in front of children.
If any one live on rent then, it has going far,, far,, from the reach of buying home,, lastly I say ALLAH IS THE BEST PROVIDER
zahid ali
on said
Azeem bhai, Scheme 33 is still not fully developed. 2 years before, i passed by scheme 33 while going to purchase a cow on Eid-ul-Azha. There was a pathetic condition of scheme 33 in night. I dont know what is the situation right now. Yesterday I saw an advertisement on facebook about 120 yard double story brand new banglow in 135 lac in gulistan -e-johar. Then who will buy a 120 yard plot in 120 lac in scheme 33. Everybody knows that Gulistan-e-Johar is much better than scheme 33. Let them try to sell in 120 lac. You are right that they are expecting the same profit as they gained 3 years before, but everyday is not Sunday.
zahid ali
on said
In Gulshan-e-Maymar Karachi, 240 sq yard double story house (A-1 class) the heighest price is 280 lac on zameen.com and lowest price is 185 lac in olx. Almost same construction. One party is struggling to sell in 185 lac while other party is optimistic to sell in 280 lac. What is contrast. Everyday some agents are updating their advertisement by reducing prices.
Muhammad azeem uddin
on said
Dear anwar sb,
It is true that BTK have down ward trend up to 30 to 40 %.
But if we look on the price of karachi newly develop area like scheme 33,
Someone can strange 120 square plot from 120 lakh to 90 lakh.
Actually from 2015 to 2017 investor see messavive margin of profit I mean mind blowing.
Now they still thinking quite same profit very soon.
I just want to all reader that still THEIR IS NO REDUCTION OF PLOT PRICES AT KARACHI WHERE YOU CAN BUY FOR LIVING HOME. Prices only down btk and dha city
I know one of my friends who lives in usa bought 2015 600 square plot 105 lakh and he sold it 480 lakh 2018.
He said he have never imagine this kind of profit even in usa.
zahid ali
on said
I talked to 2 to 3 landlords who want to sell off their property. They are desperate to sell off but no buyer in the market. Agents are convincing them to hold so that they can get as per their demand in future.
ANWAAR UL ISLAM
on said
Zahid Ali
Pak plans to seek USD 15 bn in new loans to pay external public debt: report
https://tribune.com.pk/story/2232028/2-pakistan-seeks-15b-loans-fy21/
DEBT TO GDP RATIO has great impact on real estate prices.
Debt to GDP Ratio was in decline when Pakistan saw property booms in 2003-2006 and 2013-2016.
But now DEBT TO GDP RATIO is record high at 100%.
Economy is in free fall.
Unemployment is high.
Rupee is once again declining against dollar.
Purchasing power is decreasing.
So no one will invest in real estate.
Jamshed
on said
Anwaar
Yes, nothing would work to stop the real estate collapse in this economic crisis.. Neither the discount rate nor the relaxation to black money holders.
ANWAAR UL ISLAM
on said
Jamshed
Shocking developments;
Pak plans to seek USD 15 bn in new loans to pay external public debt: report
https://tribune.com.pk/story/2232028/2-pakistan-seeks-15b-loans-fy21/
Jamshed
on said
Anwaar
Economic crisis/ recession is so severe and deep that in terms of property Value every coming day is worst than the previous one.
ANWAAR UL ISLAM
on said
Jamshed
It is a fact.
Even Imran Khan’s black money relaxation has failed to reverse the property price crash.
This is just the start.
The cycle will end by 2026 when we will see real demand and property price increase.
Zahid Ali
on said
One property dealer is saying (on youtube) that there is not a single transaction in bahria town after corona virus epidemic.
ANWAAR UL ISLAM
on said
Zahid Ali
Many needy people have sold their properties at a loss of 30-40% as they need money.
Pakistan real estate sector will never see a revival.
WHY?
No end users?
Majority of end users are living in Middle East who have lost jobs or faced the massive pay cuts.
Local Pakistanis have no money.
Yesterday met a man who has shop in Hafeez center Lahore.
He told me that before cornavirus his monthly saving was 3 LAC.
Now he has sold his car as his income in nil since the last 3 months.
zahid ali
on said
State bank discount rate has come down to 8%. This is contrary to what happened in the last decade cycle. In the last decade cycle, the interest rate came in single digit in 2014-15. Now the next bullish trend of property market may come earlier then it was expected in 2023-2024. Food for thought. Now where people will invest? Fixed deposit is not giving lucrative rate. The investor may come to real estate market again and subsequently next bullish cycle may start. Although it is only one factor, the other all factors (joblessness, covid 19,recession in whole world etc) are against the bullish trend.
ANWAAR UL ISLAM
on said
Zahid Ali
This is the reality;
zahid ali
on said
why my last comment is not shown???
Jamshed
on said
Anwaar
Pakistan economy is facing the worst recession one had ever seen in the history. Pak rupee would be under intense pressure. How long Pakistan would survive on loans and donations. Mr. Prime minister has any vision? Where is the vision of Imran Khan!
ANWAAR UL ISLAM
on said
Jamshed
Ture.
IK has no vision at all.
Jamshed
on said
Anwaar
What exciting news in the coming budget?
ANWAAR UL ISLAM
on said
Jamshed
Real Estate Tax Reforms are expected. But unfortunately economy is already in recession.
Fawad Khan
on said
Hi Sir Anwaar! I liked this post. Your site is very good having a lot of rich features. This site is an understandable and impressive website.
Jamshed
on said
Anwaar
Horrible economic and human crisis. Allah may forgive us and help us.
Jamshed
on said
Anwaar
Very poor planning and governance. This locust threat is a great threat for agriculture and food security in this economic crisis.
ANWAAR UL ISLAM
on said
Jamshed
In addition to that Saudi Arabia has allowed the private sector to cut pays by 40%.
Abdullah idris
on said
Good analysis as always Anwaar Bhai. Assuming our national economy enters into recession as projected, when you assume property market will start stabilizing? 2021, 2022 or 2023? Will decade cycle theory of property hold this time or we will see next cycle being delayed by COVID19?
ANWAAR UL ISLAM
on said
Abdullah Idris
Current news is that Saudi Arabia allows to cut 40% salaries in private sector.
https://gulfbusiness.com/saudi-arabia-to-cut-private-sector-salaries-by-40/
You can see that Pakistani remittances are reducing day by day.
In other words Pakistani real estate sector is losing the prospective buyers as Pakistan expatriates are losing jobs in Middle East and Europe.
Indian unemployment is 21% now. Can we tell what are the numbers in Pakistan? Definitely Pakistani economy is in worst situation than India.
Prices will now only increase with the economic boom in Pakistan.
Jamshed
on said
Kamran
Do not be fooled by those real estate agents. Property prices should fall by 70 percent at least.
ANWAAR UL ISLAM
on said
Jamshed
Locust invasion may cause Rs600 bn loss to Pak economy: FAO
https://www.thenews.com.pk/print/654890-locust-invasion-may-cause-rs600-bn-loss-to-pak-economy-fao
Kamran
on said
You Write a true blog, not like others dealers who are stupidly crying in these crises that price will high due to amnesty scheme, invest invest and invest, Khuda Bachai in dealers mafia say, Kush log lahore main daily rates update day rehay hain jub kay markeet full close hy,
ANWAAR UL ISLAM
on said
Kamran
Pakistanis realty sector will rise? In reality DUBAI, US, CHINA, CANADA, EUROPE, UK real estate is crashing.
Today was a terrible day in the world.
US Economy is near to another depression like that of 1929.
30 Million people lost their jobs in 6 weeks only in USA.
https://www.cbsnews.com/video/30-million-unemployment-claims-filed-in-last-6-weeks/
Simple calculation;
In 1929 US GDP was 40% of world’s total GDP but it sucked in all the world into great depression.
Now US GDP = 25% of world GDP
Europe GDP = 25% of world GDP
CHINA GDP = 25% of world GDP
Middle East has been devastated.
We can imagine what is coming for Pakistanis.
We should ready for massive street protests and destruction.
ANWAAR UL ISLAM
on said
Kamran
Black money amnesty is just a trap.
In reality Pakistani government is so desperate to get cash that it will soon hang the black money holders in squares to get hold of the cash from money launderers.
Pakistani economy has already crashed.
Government needs money as foreign remittances are decreasing day by day.
Foreign investors have also withdrawn billions of dollars from Pakistan.
Jamshed
on said
Anwaar
Excellent analysis. I think real estate agents should also realise the economic situation. Expected fall in property prices in Pakistan should be 70 percent at least. Correction should be by 70 percent .
ANWAAR UL ISLAM
on said
Jamshed
Its on the ways as unemployment is record high and so is poverty level.
Pakistani real estate market is facing the real crisis of end users or buyers. (Local Pakistanis have no money and Pakistani expatriates have lost jobs).
Today I estimated something and it shocked me.
Pakistan will loose 5 billion dollar remittances or 5 bl less this year.
In 2019 total houses constructed in Pakistan were 1 LAC.
By $5 billion we can construct 1.5 LAC homes.
So imagine 10 million people get business when 1.5 LAC houses are built.
You can see the coming unemployment shock in Pakistan.
Jamshed
on said
Anwaar
Covid 19 is still not under control and due to inadequate testing the exact scale of spread of this infection can not be estimated. But things are not good in view of daily rise of number of infected new cases inspite of the very low testing.
If this situation would continue, this would take longer to control the infection and To relax the lock down down
ANWAAR UL ISLAM
on said
Jamshed
COVID-19 has done its magic in Pakistan by devastating the economy. But its just a start;
Foreign Remittances To Pakistan Would Face Historic Decline: World Bank;
https://www.researchsnipers.com/foreign-remittances-to-pakistan-would-face-historic-decline-world-bank/
Joblessness, poverty may rise: EAD;
https://www.brecorder.com/2020/04/30/593667/joblessness-poverty-may-rise-ead/
Debt will witness significant increase in last quarter of current FY;
https://nation.com.pk/01-May-2020/debt-will-witness-significant-increase-in-last-quarter-of-current-fy
Aurangzeb
on said
Sir, will the present crisis, effect DHA or only other societies.As most people say, plot price always stable in DHA.
ANWAAR UL ISLAM
on said
Aurangzeb
People have no idea what is coming.
1- Dubai property prices are 75% down from peak of 2008.
2- Financial experts in USA saying that due to recession plus depression property prices in America will fall by 70%.
Do you think Pakistan will be safe?
Jamshed
on said
Anwaar
World bank, Asian Development bank and IMF all are concerned about Pakistan economic situation and are afraid that this may not transform into big human crisis.
ANWAAR UL ISLAM
on said
Jamshed
World Health Organisation and IMF have also warned that number of poor people can double due to corona virus pandemic COVID-19 in Pakistan.
Jamshed
on said
One more thing that needs to be highlighted in this context . Millions of Pakistani working in the Middle East are losing their jobs and would come to Pakistan in near future . This would result in loss of remittances and IK government has to arrange job opportunities for them or has to arrange funding for them from Ahsas programme .
As property market is 60 to 70 percent down in UAE and other countries so there real estate markets are more affordable and attractive for the investors now. So even the investors from Pakistan would be inclined to invest in UAE property market resulting in flight of capital if the Pak real estate would not go down to the same extent.
Jamshed
on said
I would advise not to invest in Pak real estate please Because there would be massive fall in the prices very much likely in line with other countries rather the situation in Pakistan would be worst than in Dubai and other countries.
Anyhow we will see how the covid – 19 situation in Pak in the coming months. Please focus on Covid -19 at present. The biggest economic threat
Do not be fooled by the realtors.
ANWAAR UL ISLAM
on said
Jamshed
Recession in Pakistan;
https://www.thenews.com.pk/latest/648698-coronavirus-shock-to-trigger-pakistans-first-annual-recession-in-2020-moodys
Ahmad
on said
Dear Azeem SB
I have a plot in one of the societies which you mentioned in your comment and also prime located. What was the price in early 2016 now I am getting almost half the amount. Having said that it is quite possible that I approached wrong real estate agents. Maybe my earlier analysis could be wrong.
However I do agree with you to an extent that dynamics of Pakistan economy is little bit different than rest of the world. Hopefully real estate market surge at least it will be good for me.
Cheers
Muhammad azeem uddin
on said
Dear ahmed sb,
Regarding scheme 33, the price of those plots have devalue that dont have any ground working. And few plots and home are also devalue because of illegal housing scheme.
If we talk, merchant navy, PCSIR, KU,TEACHERS, PELI BETH, PANJABI SAUDAGAR, etc, their is no price downward trend.
Anwar sb is very much honorable person and I regard him, but he is telling actual truth and real position propert situation according to international economy.
But the missing link is Pakistan property market is different from that.you can not compare it from Dubai, USA, UK .
Pakistani propert market is based on IMF, WORLD BANK , US AID that pushes market more high.As well remittance.
That is why property market soaring and their is no chance to come down.
Jamshed
on said
Anwaar Ul Islam
In view of global and national economic and health crisis prices of 500 yards plot in DHA Karachi should not not be more than 1 crore and 500 yards house should not be more than 3 crores. Unfortunately, the real estate agent are asking for very high prices. I would advise the genuine buyers with halal money to wait please and do not be fooled by these realtors.
ANWAAR UL ISLAM
on said
Jamshed
Best way to buy property in Pakistan;
The property you want to buy; just ask the realtor about the similar property you want to sell.
Then estate agents will give you the real price.
BECAUSE
If you want to buy a property, agents will tell you high price.
But if you want to sale the similar property, estate agent will tell you very low price.
Ahmad
on said
Dear Azeem Bhai
I also have a plot in Scheme 33 and trust me value has been slashed almost 50%. I have been following Anwar sahib since long time and he kept saying that real estate is going to be crashed soon and eventually it happened but worst part was that i did not act on his advice at the right time eventhough I knew that he is right. Cut the long story short visit again to same estate agent and tell him you want to sale your plot in the same area than you know real price of that plot. Thanks
Jamshed
on said
Anwaar
Yes, I agree with you . Very bad economic crisis and property crash of the history. This is the fact.
Jamshed
on said
Yes , I agree with Mr. Anwaar. Let’s see how Imran Khan and his Government manages the real estate by inviting Black money.
I think IK has made another big blunder.
I believe that real estate value should be true growth driven not black money or corruption driven. This will make the life more comfortable for corrupts and black money holders and will make the life more miserable for average man rather this might push the middle income people towards poverty. So IK has decided that two extremes should live in Pakistan one is elite and rich people like Imran Khan and second the poor people running after the trucks for food. No middle income .
Imran Khan always talks about ansars and muhajirs in Riasat-e- Madina but he never mentions about Hazrat Abu bake, Umar, Usman, the khalifa-e -Rashideen who donated all of their wealth to the Riasat and poor people in the time of crisis. IL is just making the public fool for his power and in fact he is the shelter for the mafias and great beneficiary of the ill gotten money from the mafia. He beautifully uses the mafia and the discarded them like Jahangir Tarim who brought him to power and now discarded by IK. Now he is using the shoulders of land , builder mafias. This will definitely make the middle income and honest people life very hard
ANWAAR UL ISLAM
on said
Jamshed
This is just another trap to capture the people with black money.
World economies are crashing.
Oil price has gone negative.
Nothing can save the real estate price crash.
Muhammad azeem uddin
on said
Dear anwar bhai,
I am also reading many posts from different estste agents, news anchor, analyst but all of them are saying that market is on way further boost of price.
Like zameen.com portal you can see how they are big but they are claming prices will go up.
Similarly if I visit practically then I see no price reductions at all. Yesterday I read newspaper that government debt reaches 90% of GDP.
But I am very surprised when I meet one estate agent and he told me 400 sq yard plot of scientist society scheme 33 karachi was 250 lac but after government ordinance it is 270 lac.
This guy is requesting me to buy this plot, as he is saying I lost 20 lac just I do not finalized the deal.
ANWAAR UL ISLAM
on said
Muhammad Azeem uddin
People should buy the plots as they can eat it when there is no job or money?
Oil Price is trading negative. Pakistanis are losing jobs in MID-EAST / EUROPE.
World economies are upside down.
Pakistani economy has collapsed.
People are begging for food in Pakistan but property prices will rise.
Pakistanis are really funny.
Jamshed
on said
Anwaar Ul Islam, one more point
If this ordinance leads to increase the property prices as some people thinks because of The influx of black money then property market would be more unaffordable not only for Pakistanis but also for the foreign investors . Because of the crisis , as the real estate in other countries like UAE has gone down to 50 to 70 percent so properties are more affordable as in all other countries the real estate value is the growth driven in the other sectors not the black money driven. So foreign investors Including well off Pakistanis abroad would like to invest there. Net result would be no remittance.
ANWAAR UL ISLAM
on said
Jamshed
For real estate prices to increase there should be the end buyers or end user.
Unfortunately in Pakistan end users are hard to find.
Pakistani economy is in free fall.
Crude Oil price is below $1.
Pakistanis are losing jobs in Mid-east and Europe.
Who will buy the property?
Jamshed
on said
Anwaar Ul Islam
Excellent analysis. I have one question regarding the revision of Property rates by the FBR. This time FBR should reduce or increase or keep the rates unchanged?
ANWAAR UL ISLAM
on said
Jamshed
FBR will both increase and decrease the prices to keep them at 80% of market value.
Depending on the situation.