Published On: Fri, Dec 3rd, 2021
Published in Category: Islamabad

ICCI strongly opposes unprecedented hike in property valuation by FBR

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Islamabad: The business community including realtors in an emergent meeting held at Islamabad Chamber of Commerce & Industry (ICCI) strongly opposed the new market value determined by FBRfor immovable property of 40 major cities of the country including Islamabad vide its SRO1548(I)/2021 dated 1st December 2021 as it would render a big blow to the business activities of property and construction sector and foil all efforts of the government to revive the economy.

Addressing the meeting, Muhammad Shakeel Munir, President, Islamabad Chamber of Commerce & Industry said realizing the vital role of property and construction sector in the economic development of the country, the Prime Minister had offered an attractive construction package, which boosted the business and economic activities across the country. However, unprecedented hike in the market value of immovable properties by FBR unilaterally without consulting with stakeholders that would cause a severe blow to the business of property and construction sector and create lot of unemployment besides weakening the overall economy.

He said that in 2019 a Committee including representatives of private sector was formed at FBR level to determine the market value of property, but FBR has bypassed the said Committee in determining new market value.

He said that depreciation of rupee, high interest rate, rising inflation, increase in prices of POL and utilities tariffs has already affected the business activities and this decision would cause a big slump in the economy.

Shakeel Munir said that the growth of over 50 industries depended on the construction sector and new valuation of FBR would damage the business of all construction related industries. Giving an example, he said that compared to property valuation of 2019in Islamabad, the market value of immovable property has been increased in F-8 Sector by over 127 percent, E-11 Sector by over 163 percent, E-7 Sector by over 164 percent and F-7 Sector by over 283 percent, which was totally unjustified.

He said that this move would cause significant outflow of capital from the country and discourage new investment in property and construction sector. He urged that the FBRshould immediately withdraw its SRO of new market value and engage all stakeholders including ICCI into consultation process to arrive at a consensus decision on new valuation of properties. He said posing confidence in the policies of current government, many foreign investors have made investment in Pakistan’s construction sector, but FBR’s new property valuation has created great concerns in them about their future due to which FDI would be badly affected in the country.

He appealed to the Advisor PM on Finance and Chairman FBRto call an urgent meeting of stakeholders including ICCI to find out a consensus solution of this important issue.

Speaking at the occasion, Muhammad Masud, Convener, ICCI Real State and Developers Committee said that PM’s construction package has attracted investment of billions of rupees in the property sector due to which many big construction projects have been startedin the federal capital. However, he said that FBR’s new market value of property has disappointed all major investors of construction and they have been compelled to reconsider their investments in Islamabad. He urged that FBRshould urgently withdraw its SRO 1548(I)/2021and consult with stakeholders to resolve this issue.

Muhammad Faheem Khan Vice President ICCI, Muhammad EjazAbbasi, Muhammad Naveed Malik, Tahir Abbasi, Rana QaiserShehzad, AshfaqChatha and Saeed Ahmed Bhatti, Khalid Chaudhry, Ch. Tahir, Zia Khalid Chaudhry and others also spoke at the occasion and strongly opposed the new market value of FBR as it would badly affect the business activities of property and construction sector and render thousands of people jobless. They urged that FBR should reconsider its unilateral decision to save the economy from further troubles.