Aurangzeb pushes REIT reforms to deepen capital markets, attract investment

Federal Minister for Finance and Revenue Muhammad Aurangzeb on Saturday chaired a virtual meeting of a focus group tasked with accelerating the growth of Real Estate Investment Trusts (REITs), as the government seeks to strengthen capital markets and mobilise investment.

The meeting, convened by the Finance Division, reviewed policy measures aimed at expanding the REIT framework, improving market depth and enhancing its contribution to economic activity.

Discussions centred on refining the taxation regime, streamlining procedures for REIT issuers and improving the overall market ecosystem to attract greater investor participation, particularly from retail segments. Participants also highlighted the need to address procedural inefficiencies, clarify regulatory requirements and ensure stronger coordination among stakeholders.

Officials noted that while Pakistan’s REIT market has shown initial progress, it remains underdeveloped, with significant room for expansion through targeted reforms and better policy alignment.

The session also examined ways to strengthen secondary market functioning, facilitate smoother investor entry and exit, and boost awareness and confidence in REIT instruments to sustain long-term growth.

Aurangzeb emphasised the importance of aligning Pakistan’s REIT regime with evolving international practices, while maintaining simplicity and ease of implementation. He stressed that reforms should remain practical, market-responsive and consistent with broader economic objectives.

The minister reiterated that REITs can play a key role in promoting documentation and formalisation in the real estate and construction sectors, while improving capital allocation and supporting economic activity.

He also reaffirmed the government’s commitment to ensuring a transparent, predictable and facilitative policy environment to encourage investment and innovation, alongside advancing sustainable and inclusive economic development.

The meeting concluded with agreement on continued stakeholder engagement and timely follow-up on reform priorities, with participants including representatives from the business community, financial institutions and capital market stakeholders.