Country economies are affected differently depending on the level of construction activity relative to their overall economic activity. Construction is an important sector in the economic growth of a nation & country. The construction industry is an investment sector where mostly government shows high interest. The construction industry to develop infrastructure related to health, transport as well as education sector. For prosperity of any nation, the construction industry is essentials to create jobs.
The construction industry is one of the important industries of today that has a great effect or influence on the economy of any nation. Construction can be based on civil engineering. Building, road, monument, wooden structure, real estate assets, etc. is done by the construction industry.
The construction industry plays an important role in the economy, national socio-economic development goals of providing shelter, infrastructure and employment. Construction industry is a sector of the economy which makes its direct contribution to economic growth.
The industry has great employment-generation potential, multipliers in employment opportunities in items of (labour-based) construction. It can also create employment for the local population. A new building requires the services of architects, building suppliers, electricians, engineers, & retailers, many more. When construction slows, it causes a drop in businesses for all connected industries. Construction projects help the economy both locally & nationally, creating a ripple effect across a range of industries.
Real estate is a growing sector of the economy of Pakistan. Billions are spent on buying residential and commercial plots. Real estate agents are playing an important role in the economic development of the country. Prime Minister Imran Khan announced an incentivized package for the construction industry in order to increase employment opportunities in the country in the wake of COVID-19 outbreak. Announcing the package those who invest in the sector will not be asked questions about their source of income. Fixed tax will be introduced in construction sector. If the investor invests in construction projects under “Naya Pakistan Housing Authority”, 90% fixed tax will be removed and he will have to pay only 10% tax. Tax on construction will be lifted from all sectors, except steel and cement etc. sales tax is also being brought down in coordination with the provinces. There will be no capital gain tax for a family that sells its house.
Well known economists, businessmen & associations have cheer up with the government for providing tax relaxations to builders and developers amid the prevalent crisis caused by coronavirus pandemic.
Under such atmospheres, when the worldwide economy is heading towards a recession, our government under the leadership of Prime Minister Imran Khan has taken appreciable steps to stimulate construction industry by providing it concessions & tax relations.
Government decision would boost investments in the real estate sector, not only be able to create employment opportunities but would also activate around dozens other allied industries.
The construction industry package special small housing schemes for the middle-class could be a better option to benefits from these tax relaxations, as the government had also provided finance flexibility to low-income people for building their own houses. Something the country desperately needs amid virus lockdowns.
Hope fully business community & chambers to ensure the enforcement of Standard Operating Procedures (SOPs) for protection against coronavirus.