DUBLIN–(BUSINESS WIRE)–The “Construction in Pakistan – Key Trends and Opportunities (H1 2021)” report has been added to ResearchAndMarkets.com’s offering.
The outbreak of the Coronavirus (COVID-19) pandemic has further exacerbated the weaknesses in the Pakistani construction industry, which had already recorded contractions in 2018 and 2019.
The government had initially restricted activity in the construction industry amid the lockdown restrictions imposed to contain the pandemic; however, in mid-April 2020, it allowed the industry to resume operations. The construction industry in Pakistan is expected to expand by 3% in real terms in 2021, following a decline of 6.2% in 2019.
To support the construction sector, and boost employment and economic output, Prime Minister Imran Khan announced a construction stimulus package in April 2020. The package includes a fixed tax rate for the construction industry, a subsidy worth PKR30 billion (US$191.5 million) for the Naya Pakistan Housing Scheme, a decrease in sales tax and incentives for builders to construct affordable housing. I
n addition to this, those who invest in newly constructed buildings will be exempt from declaring their source of income until June 2022. Under the new law, tax on low-cost housing construction under the Naya Pakistan Housing and Development Authority was reduced by 90%, advance tax on the sale of property was reduced from 10% to 5%, one-time capital gain tax was exempted on houses and…