Islamabad Capital Territory

Islamabad | ReNews Pakistan
The Securities and Exchange Commission of Pakistan (SECP) has urged builders and developers to formalise their businesses through company registration, highlighting the potential benefits of stronger corporate structures, improved access to financing and greater opportunities for growth in the real estate sector.
The SECP held a briefing for office bearers of the Association of Builders and Developers (ABAD) on corporate reforms and the process of registering businesses as companies. SECP Commissioner Muzaffar Ahmed Mirza briefed ABAD representatives on the advantages of adopting formal corporate structures and the regulatory framework governing company registration.
During the session, the SECP emphasised that formal registration could enable businesses to strengthen their corporate structures and improve their ability to access financing. The move could also provide builders and developers with a more organised framework for expanding their operations and engaging with formal financial and investment channels.
The regulatory body also provided ABAD members with a practical demonstration of its eZfile digital portal, explaining how businesses can use the online platform to complete the company registration process.
The digital registration facility is aimed at simplifying the incorporation process and enabling businesses to complete regulatory procedures electronically, reducing the need for traditional paperwork and in-person processing.
Following the briefing, ABAD members will consider registering their businesses as formally incorporated companies and exploring opportunities related to the registration of Real Estate Investment Trusts (REITs).
REITs provide a corporate investment structure through which investors can participate in income-generating real estate assets. Greater participation by organised real estate businesses in the REIT framework could also create additional channels for investment in the property sector.
The SECP said formal company registration could help real estate businesses improve their access to financing while strengthening governance and corporate structures.
ABAD will also submit proposals concerning the real estate sector to the SECP for consideration. The proposals are expected to provide industry input on regulatory and corporate matters affecting builders and developers.
The engagement between the SECP and ABAD comes as Pakistan’s real estate sector continues to seek greater formalisation, improved financing mechanisms and investment structures capable of supporting organised growth in property development.

Islamabad | ReNews Pakistan
A decision has been taken to seek public opinion through a referendum on the creation of new provinces and administrative units in the country.
According to sources, a high level decision has been made to hold a public referendum on the establishment of new provinces and administrative units. Punjab, Sindh, Balochistan and Khyber Pakhtunkhwa are proposed to be included in the initial phase.
Sources said preparations for conducting the referendum are expected to take around six months, during which the necessary administrative and other arrangements will be finalized.
According to the sources, voters will be asked a direct question regarding the creation of new provinces or administrative units, with responses sought in the form of ‘Yes’ or ‘No’.
The results of the referendum will form the basis for decisions regarding the creation of new provinces or administrative units in the respective provinces. Where the public votes in favour of new administrative units, further steps will be taken accordingly, while a vote against the proposal would mean that the creation of new provinces or administrative units would not proceed in that province.
Further details regarding the legal, constitutional and administrative mechanism for conducting the referendum are yet to be disclosed.

Islamabad | ReNews Pakistan
The Asian Development Bank (ADB) has identified lower property transaction taxes and a higher interest subsidy under the Prime Minister’s housing scheme as measures that could provide fresh support to Pakistan’s construction sector during fiscal year 2026–27.
In its latest Asian Development Outlook September 2026, the ADB maintained Pakistan’s economic growth forecast at 3.7 percent for FY2027, while projecting average inflation at 8.3 percent. The bank said construction activity is expected to gain from government budget incentives, particularly measures reducing the cost of property transactions and strengthening housing finance support.
The assessment comes as Pakistan attempts to revive private investment and economic activity following a period of subdued demand and high financing and transaction costs.

The ADB specifically pointed to reduced property transaction taxes as one of the growth supporting measures in the FY2026–27 budget.
Lower taxes on property transactions can reduce the upfront cost associated with buying and selling immovable property, potentially encouraging transactions and improving liquidity in the real-estate market. The measure also forms part of a broader government strategy aimed at easing the tax burden on households and businesses.
The ADB said private investment is expected to remain the main driver of demand in FY2027 after registering an 8.6 percent real increase in FY2026. It noted that other measures, including lower tariffs on industrial inputs and a reduced corporate tax burden following the cut in super tax, could further improve the investment environment.
For the construction industry, increased property-market activity can have wider effects across associated sectors, including cement, steel, building materials, transport and construction services.

The ADB also highlighted a higher interest subsidy under the Prime Minister’s housing scheme as another factor expected to support construction.
The federal budget has allocated significant resources for housing-related interest subsidies, including funding for the Mera Pakistan Mera Ghar housing-finance scheme and the Prime Minister Apna Ghar Programme. Official budget documents show allocations for housing-finance markup subsidies and the PM Apna Ghar Programme in FY2026–27.
The government has separately been expanding the mortgage-eligible property base for the Apna Ghar programme. In September, Prime Minister Shehbaz Sharif directed provincial chief secretaries to conduct surveys to identify properties that meet mortgage requirements.
According to official figures presented at a September 9 review meeting, 147,504 applications had been received under the PM Apna Ghar Scheme, with 53,127 approved applications worth Rs313.42 billion. Banks had disbursed Rs45.43 billion to 8,739 applicants.
The government is also developing a system to identify plots across Pakistan that satisfy mortgage requirements, with Islamabad being used as the pilot city.
Property-Sector Support
While the ADB sees policy support for construction, it has not presented Pakistan’s overall economic outlook as risk free.
The bank maintained its FY2027 growth forecast at 3.7 percent, below the government's 4 percent target, while inflation is projected at 8.3 percent, above the State Bank of Pakistan’s medium-term target range of 5–7 percent.
The ADB expects inflation to gradually moderate from 11.1 percent year-on-year in June 2026 and return to the 5–7 percent range during the second half of FY2027. However, elevated energy, logistics and agricultural input costs are expected to keep pressure on prices.
For construction, higher energy and logistics costs remain significant because they can increase the cost of transporting materials and producing energy-intensive products used in building projects.
The bank has also warned that escalation of the Middle East conflict could increase energy-import costs, intensify domestic inflation and affect labour markets in Gulf economies, potentially putting pressure on Pakistan’s remittance inflows.
The ADB's assessment therefore presents a mixed picture for Pakistan's property and construction market: lower transaction taxes and stronger housing finance subsidies provide policy support, while inflation, energy costs and external risks remain constraints.
The bank said continued fiscal consolidation could create greater room for private-sector credit, while improved investor confidence, stronger external buffers and recent sovereign credit-rating upgrades are supporting the investment environment.
For Pakistan's property sector, the combination of lower transaction costs, subsidised housing finance and improving private investment could provide additional support to construction activity during FY2027, although the ultimate impact will depend on financing conditions, inflation and implementation of the government's housing and tax measures.