ISLAMABAD: A leading foreign investor in real estate sector has strongly recommended a ten-year tax holiday for Foreign Direct Investment (FDI) in the real estate sector, repatriation of profits and constitution of a dedicated regulatory authority under the umbrella of the Special Investment Facilitation Council (SIFC).
Talking to a selected group of journalists on Friday, Tarek Hamdy, CEO of EIGHTEEN Housing, underscored the pressing challenges and promising opportunities within Pakistan’s real estate sector. The major proposals of foreign investor focused on enhancing regulatory frameworks, attracting foreign investment, and streamlining bureaucratic processes to spur economic growth.
Tarek Hamdy emphasized the urgent need for appointing technocrats as members of the said regulatory authority for the real estate sector. He commended the SIFC for the significant role it has already played in supporting foreign investors and streamlining investment-related processes in various sectors of Pakistan’s economy.
Sharing his experience, he stated that the formation of the SIFC marked a positive step toward reducing bureaucratic red tape, creating investor confidence, and fostering a more business-friendly environment. However, to make the SIFC even more effective, Hamdy proposed expanding its structure by incorporating technocrats, economists, legal experts, and seasoned professionals from the different sectors and finance industries to ensure balanced and informed decision-making.
A pivotal aspect of Hamdy’s proposals centres on creating a more enticing and predictable investment climate for international investors through bold and strategic fiscal incentives. He passionately advocated for a ten-year tax exemption specifically tailored for Foreign Direct Investment (FDI) in the real estate sector — an industry he believes holds untapped potential to drive economic growth and urban transformation. In addition, he stressed the critical importance of offering a clear and guaranteed mechanism for the repatriation of profits, which would signal to global investors that Pakistan is open for business on competitive and investor-friendly terms.
CEO Eighteen questioned the rationale behind expecting international investors to park their capital in Pakistan without assurances of meaningful returns or a clear exit strategy. “Why would a foreign investor bring their money here if they can’t take it back with profit?” he posed, highlighting the fundamental need for Returns On Investment (ROI) as a cornerstone of global capital movement.
Tarek Hamdy also addressed the critical issue of over-taxation in the real estate sector, calling it a major impediment to growth and investor confidence. He argued that excessive and often arbitrary taxation has become a clear burden on the industry, directly impacting sales volumes and discouraging both local and foreign investment. “When taxes go up, sales go down. It’s a simple equation,” he stated, advocating instead for a more rational and balanced tax policy that encourages development rather than stifles it.
He criticized conduct of certain revenue authorities, alleging that instead of facilitating legitimate projects, some institutions have resorted to intimidation tactics. He pointed out how investors and developers are often subjected to sudden raids and pressure without substantial legal backing. Specifically, he cited an incident involving the Federal Board of Revenue (FBR) and the Punjab Revenue Authority (PRA), where EIGHTEEN Housing became the target of such actions. “They raided our offices, tried to damage our credibility, but when it came to the courts, they couldn’t substantiate a single claim,” he said.
He described these actions not just as harassment, but as deeply damaging to the investment climate in Pakistan. “You can’t expect people to invest in an environment where regulatory bodies behave like bullies instead of facilitators,” he remarked.
Addressing bureaucratic inefficiencies, Hamdy lamented the challenges posed by conflicting laws and regulations across various government bodies involved in different approvals. He advocated for the implementation of a streamlined, one-window operation approach, empowering bodies like the Board of Investment (BOI) to facilitate smoother processes and reduce red tape.
Tarek Hamdy voiced serious concerns about the unchecked mushroom growth of illegal housing societies across Pakistan, calling it one of the most alarming threats to the credibility and stability of the real estate sector. He highlighted how these unregulated entities operate without proper approvals or oversight, exploiting legal loopholes and the lack of coordinated regulatory enforcement. As a result, countless individuals — particularly overseas Pakistanis — have fallen victim to elaborate scams, investing their hard-earned money into projects that either do not exist or never materialize.
Hamdy also recommended the creation of a centralized digital registry encompassing all housing societies across Pakistan — a move he believes is critical to restoring transparency and investor confidence in the real estate sector. This registry, he suggested, should serve as a publicly accessible platform where investors—particularly overseas Pakistanis — can verify the legal status, No-Objection Certificates (NOCs), development progress, and regulatory approvals of any housing project before committing their finances.
Copyright Business Recorder, 2025
