By Yasir Ali Mehsud, Chairman, AH Group of Companies
Pakistan’s real estate and construction sector stands at a critical juncture of transformation. Contributing nearly 2% to the country’s Gross Domestic Product (GDP), the property market is not just a reflection of economic progress but a catalyst for job creation, urban development, and foreign investment. Yet, despite its vast potential, the sector remains largely undocumented and under-taxed. This is a missed opportunity for boosting Pakistan’s tax-to-GDP ratio, which continues to hover below 10%, among the lowest in the region.
Over the next decade, Pakistan’s property market is projected to experience exponential growth. This surge will be driven by rapid urbanization, increased demand for housing, infrastructure development, and technological integration, including the rise of smart cities and sustainable, eco-conscious housing. However, realizing this potential requires structural reforms, transparent valuation mechanisms, and a fair and inclusive taxation framework.
At the forefront of this transformation is Mr. Yasir Ali Mehsud, Chairman of AH Group of Companies, whose leadership has redefined industry standards. Under his visionary guidance, AH Group has emerged as a key player in shaping modern Pakistan. The Group is developing commercial, residential, and mixed-use projects that are not only architecturally iconic but also environmentally sustainable and economically impactful.
Mr. Yasir Ali strongly advocates for formalizing the sector to unlock its true tax potential. He believes that by bringing real estate into the documented economy, Pakistan can generate billions in additional tax revenues, reduce speculative trading, and attract institutional investors. “We must shift from speculative gains to productive development,” remarks Mr. Yasir Ali. “And that begins with robust documentation, transparency, and confidence in real estate regulation.”
Currently, the property sector’s tax contribution is disproportionate to its economic weight. While property transactions are subject to capital gains tax, advance tax, and stamp duties, inconsistent property valuations and widespread underreporting result in substantial revenue leakages. Streamlining valuation tables to reflect actual market rates and digitizing land records are critical reforms long overdue.
The AH Group of Companies, under the visionary leadership of Chairman Mr. Yasir Ali, is not only constructing buildings but also building trust, with communities, investors, and regulators. With landmark projects such as 091 Mall, Florenza Mall & Residencia, AH Tower, North Hills, and AH City across Khyber Pakhtunkhwa, Capital City, and Punjab, the Group exemplifies how responsible corporate leadership can drive both economic and social value.
In conclusion, if Pakistan is to increase its tax-to-GDP ratio and achieve sustainable economic growth, real estate must be part of the solution. The sector needs to be brought into the tax net through progressive policy-making. Not punitive measures, but strategic incentives that encourage compliance and investment.
As Mr. Yasir Ali Mehsud asserts, “A vibrant, documented real estate sector is not only a fiscal imperative but a national priority. It’s time to transform our cities and uplift our economy, brick by brick, policy by policy.”
