Chairman Federal Board of Revenue (FBR) Shabbar Zaidi, has claimed that property prices in the country are going to take a nosedive in the coming days. He made these remarks while briefing the National Assembly’s Standing Committee on Finance, on Tuesday.
He briefed the committee over assets declaration scheme and said that the core focus of the scheme was not to collect revenue but to document the economy.
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He said the amnesty scheme has allowed FBR to interrogate the means of income of anyone who remits more than Rs. 5 million in the country. The limit was previously Rs. 10 million, which has now been revised.
Zaidi remarked that the real-estate sector saw a boom only when the corruption in Pakistan was on its peak.
“Property buyers with the white money were never substantial in numbers,” FBR chairman said, claiming that the property prices will go down again when the implementation of new laws makes it challenging to buy a property with black money.
The meeting, headed by the former finance minister Asad Umar, also discussed the ways to introduce interest-free banking system in the country.
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The committee then directed the State Bank to come up with recommendations in this regard. Before that, the FBR chairman briefed the Senate Standing Committee on Finance on the Finance Bill 2019-20.
Headed by Senator Farooq H. Naik, the committee was informed that in the last 40 years, a whopping sum of 40 billion dollars had been money laundered from the country.
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He said the flexible laws regarding the foreign currency helped people laundering the money while the money changers and exchange companies are also to be blamed for the colossal loss.
Shabbar Zaidi informed the committee that his department is taking corrective measures which will reduce the ways of money laundering in the country.
Pretty much like every other industry destroyed. Thank you. Slow clap.
So you want black money should propagate into the country. Govt. has already given many relief who has no proof of their income. If this stance is continue then common peoples suffers more. There are more common people then VIP.
All big investors were investing their money in properties because of that, a simple plot for a common man has gone out of range. Property prices are artificially hiked in big cities.
Artificially ??? demand supply rule applies here as well bro
it will affect only residential properties. i dont believe commercial properties will be affected.
Both residential and commercial will go down 30-50%. No more investment in property business.
Investor will revert to investing in industry and service sector as imported good have become expensive
Capital flight will also occur meanwhile.
PS: Stock market may grow as a result
Do people still believe this government? Lies from day one till date….
There is East India Company Model in shape of IMF reps
Major portion of tax comes from manufacturing sector as well it employ more people but maximum return comes from real estate , so easily, then why one should set up industry. This is the main reason Pakistan GDP on next year lower than Bangladesh. ZAIDI SAHAB it is very serious issue where the country economy going.
There is big question that where this huge money deposited in the banks during recent process of amnesty scheme shall be reinvested. Can everyone set up an industry or run a business ? In my view CERTAINLY NOT. So this huge white money shall go back to the real estate sector to give it a boost. Previously white money was being invested as well but to the extant of its required FBR values. The reason of slump was uncertainty and huge holdings in shape of Prise bonds and Dollars. Now the dust is being settled and in few months the real estate sector shall flourish again.