Based on everything that has surfaced ahead of FY2026-27 (Budget 2027), it may give relief to real estate; however, it is not the regular relief that Karachi investors assume.

What could this mean for the real estate investors?

It is designed to:

Lower taxes on buying and selling property

Reports indicate that the government is considering reductions in:

• Withholding Tax (WHT) on property transactions
• Capital Gains Tax (CGT) on property sales

It aims to lower the transaction costs that have suppressed market activity, as argued by the industry.

Incentives for overseas Pakistanis

The primary objective of the policy was to attract overseas Pakistani investment amid the Gulf War. This could bring back some capital to Pakistan.

Property-related tax provisions will be reviewed

Provisions such as Section 7E will be revised, and the overall property taxation framework will be simplified.

On the other hand, the file system is speculated to come to an end, illegal housing schemes will be strictly scrutinised, and under IMF-related reforms, documentation, governance, and transparency are emphasised.