FPCCI Proposes RERA Establishment for Real Estate Regulation in Pakistan

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has put forward a significant proposal for the establishment of a Real Estate Regulatory Authority (RERA) in Pakistan. This proposal aims to bring regulation and oversight to the real estate sector, similar to practices in neighboring countries. President of FPCCI, Atif Ikram Sheikh, stressed the necessity of having regulatory bodies in every sector to ensure optimal performance and contribution to the national economy. He also highlighted the importance of engaging with relevant stakeholders to drive effective initiatives.

One key aspect raised by Sheikh is the infrastructure cess collected by the Sindh government on imports, amounting to a substantial Rs225 billion annually. He suggested that if this fund is directed towards infrastructure development and maintenance, particularly in Karachi, it could lead to significant improvements in the real estate sector and stimulate market growth.

Senior Vice President of FPCCI, Saquib Fayyaz Magoon, emphasized the potential of the real estate sector in attracting foreign exchange through remittances. Magoon urged the sector to focus on attracting investments from overseas Pakistanis, highlighting the benefits of stabilizing the rupee-dollar parity and strengthening foreign exchange reserves.

Furthermore, Convener of FPCCI’s Central Standing Committee on Real Estate Property and Builders, Syed Saquib Shah, stressed the importance of digitizing the registration system to enhance transparency, fairness, and validity in property documentation. He also advocated for the implementation of an e-stamp system in Karachi, similar to Punjab, and proposed shifting the tax burden from real estate agents to property owners for better service provision.

The proposal for establishing a Real Estate Regulatory Authority in Pakistan, as advocated by FPCCI, holds significant promise for enhancing the real estate sector's performance and contribution to the national economy. By addressing key issues such as infrastructure development, foreign exchange attraction, and digitization of processes, the sector can experience substantial growth and efficiency, benefiting both stakeholders and the overall market.