Islamabad: Overseas Pakistanis who secured plots in Islamabad’s CDA Sector C-14 through recent balloting have urged the government to waive withholding tax and Federal Excise Duty (FED) on their first-time property purchases. They have also requested the option to make payments in Pakistani Rupees instead of US dollars.
According to tax experts, many allottees are facing challenges in sending payments from abroad in USD, as required by the Capital Development Authority (CDA). The authority has received multiple requests to allow transactions in local currency, and a petition has been filed in the high court on this matter.
As per the initial allotment terms, successful overseas buyers must make payments exclusively in USD through banking channels within 30 days of the intimation letter issued on January 15, 2025. However, experts argue that many overseas Pakistanis regularly remit money to Pakistan and may not have liquid funds available abroad for this transaction. Additionally, bank charges on international transfers further increase costs.
With the federal government set to review real estate and housing sector reforms in an upcoming meeting chaired by the Prime Minister today, stakeholders are calling for meaningful incentives. Tax consultants highlight that while overseas Pakistanis contribute significantly to Pakistan’s economy through remittances, they face difficulties in claiming tax refunds, making a withholding tax waiver crucial for first-time buyers.
Experts have also proposed the establishment of a dedicated housing authority for overseas Pakistanis, similar to DHA, to streamline property acquisition and development for expatriates.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
