As Pakistan approaches the unveiling of its Federal Budget for FY2025–26, anticipation builds among key sectors, notably real estate and technology. Stakeholders are keenly observing potential policy shifts that could influence investment landscapes and economic growth trajectories.
Real Estate Sector: Advocating for Tax Reforms
The real estate industry is lobbying for significant tax relief measures in the upcoming budget. Proposals include the rationalization of Capital Gains Tax (CGT) and reductions in withholding taxes on immovable properties, aiming to stimulate market activity and attract investment.
However, there are indications that the government may consider increasing CGT rates on real estate transactions, a move that has raised concerns within the sector about potential dampening effects on investment.
Technology Sector: Seeking Support Amid Fiscal Consolidation
The tech industry, encompassing startups and established firms, is advocating for enhanced support in the form of tax incentives and funding opportunities. Given the government’s focus on fiscal consolidation and commitments to the International Monetary Fund (IMF), the sector is hopeful for policies that balance economic stability with growth facilitation.
Broader Economic Context
The IMF has emphasized the importance of fiscal consolidation in Pakistan’s economic strategy, with discussions ongoing regarding the FY2025–26 budget. The next review of Pakistan’s funding program by the IMF is expected in the second half of 2025, underscoring the significance of the upcoming budget in aligning with international financial expectations.
Saimen Group’s Perspective
At Saimen Group, we recognize the critical role that thoughtful fiscal policies play in shaping the real estate and technology sectors. We advocate for a balanced approach in the upcoming budget that fosters investment, encourages innovation, and aligns with sustainable economic objectives.