ISLAMABAD, Oct 28 (Wealth Pakistan) – Policy stability, efficient approvals, and strong public-private partnerships (PPPs) are crucial for addressing Pakistan’s housing and infrastructure challenges. Industry experts believe these measures can unlock significant investment, spur economic growth, and expand affordable housing options nationwide.
Policy predictability to attract investment
Mohammed Hassan Bakshi, Chairman of the Association of Builders and Developers of Pakistan (ABAD), told Wealth Pakistan that the construction and real estate sector is at a defining moment. The country faces a deepening housing shortage amid economic instability but also holds vast potential for growth and innovation.
Bakshi said Pakistan’s housing deficit—now exceeding 10 million units—has become a serious social and economic concern. The shortage disproportionately impacts low- and middle-income families, many of whom struggle to find affordable, quality housing. He urged policymakers to recognize housing as a national development priority and to implement sustained, actionable reforms.
He emphasized that stable, long-term tax policies are essential for attracting both domestic and foreign investment. “Frequent policy reversals and inconsistent taxation discourage investors and complicate project planning,” Bakshi noted. Predictable and construction-friendly tax measures, such as reduced duties on raw materials and uniform fiscal frameworks, could build investor confidence and strengthen allied industries.
Streamlining approvals through a one-window system
Bakshi called for introducing a “one-window” approval system to remove bureaucratic hurdles that slow development. Lengthy procedures and overlapping departmental clearances, he said, cause costly delays and discourage private participation.
“A centralized and transparent mechanism for construction approvals can cut red tape, encourage investors, and ensure faster project execution,” he explained. Simplified regulations would also support the government’s broader vision of expanding housing access and accelerating infrastructure delivery.
Fiscal stability and incentives for growth
The ABAD chairman reiterated that a construction-friendly fiscal environment is vital for sustained growth. High and erratic taxation creates uncertainty and prevents investors from committing to long-term projects.
He proposed targeted tax incentives for developers, lower import duties on essential materials, and stable fiscal frameworks to stimulate economic activity and employment. These steps, he said, would benefit both the construction supply chain and Pakistan’s broader economy.
PPPs as a strategic development model
Bakshi strongly advocated for public-private partnerships as a tool to meet Pakistan’s massive infrastructure needs. “The public sector alone cannot shoulder the burden of expanding housing and infrastructure,” he said. “PPPs allow the private sector to bring efficiency and financing, while the government provides enabling policies, land, and guarantees.”
He noted that well-structured PPPs could mobilize billions in investment and catalyze large-scale urban transformation. Global examples show that PPPs can accelerate delivery, ensure better project management, and reduce fiscal pressure on governments.
Building a sustainable future
Bakshi emphasized that unlocking the construction sector’s potential will require coordination between government and private stakeholders. Long-term policy consistency, transparent governance, and sustainability-focused reforms can turn the sector into a major engine of growth.
“With strategic reforms, inclusive planning, and modernization, Pakistan’s construction industry can build not only homes but also a stronger, more resilient economy,” he said. “A thriving housing and infrastructure sector will enhance livelihoods, generate jobs, and drive national progress.”