Overseas Pakistanis have said no to buying plots in US Dollars on their first-time purchase of plots in new sectors of Islamabad and have also demanded the federal government to withdraw withholding taxes and Federal Excise Duty (FED).
Successful overseas applicants in the Capital Development Authority’s (CDA) Sector C-14 balloting are pushing for these demands in the upcoming real estate development package.
The CDA has received multiple requests to allow payments in PKR, as US dollar remittances through banking channels have been slow. Some applicants have even approached the high court on the matter.
CDA’s balloting for Sector C-14 has prioritized overseas Pakistanis but requires payments exclusively in US dollars within 30 days of January 15, 2025. However, many expats said they lack liquid funds abroad and would incur over 2 percent in banking charges for dollar transactions.
Buyers currently face a 4 percent withholding tax, in addition to provincial taxes and stamp duty. Overseas Pakistanis, who typically have no taxable income in Pakistan, struggle to claim refunds from their homeland.
