COVID-19 indicators in Pakistan are presenting a definite slowdown in Pakistan. Except for large indoor functions, the social and commercial lockdown has grown. Pakistan `Educational companies have opened progressively with SOPs in place. Limitations while traveling by train and airlines are partially lifted since 1st October. 

Preventive measures

The COVID-19 numbers show a slowdown. Screening at the airports wanted masks in public places, and a ban on large indoor social groups is but imposed. The government has started performing a “micro-smart lockdown” strategy. Preparing for the likely resurgence of COVID-19 cases in Pakistan, authorities have included new limitations on wedding receptions, including checking the number of fellows to 300 (indoor gatherings) and 500 (outdoor gatherings) and reducing the term of the events to 2 hours.

Exit strategy

The government has confirmed the new Gwadar Airport project at the more precious than the first cost review. Abroad grant funding for the project comes from Oman and China. The share of the Chinese honor in the entire construction cost is 63.3%.

The State Bank of Pak, in partnership with the Naya Pakistan Housing & Development Authority, has announced the allocation of PKR 33 Billion for payment of margin support for financing directed at the construction and selling of new houses.

As a symbol of progressive business agreement post-COVID-19 lockdown, banks have reported an increase in new property in September 2020 after successively holding back accommodations from borrowers in the first three months.

In November, Pakistan has voted to open up the LNG market for the private sector to reduce business risks for the government and enhance gas stores through the winter period. The secret member will be allowed to import LNG from November 2020 to February 2021. 

Economic force

Related to the Pakistan Automotive Manufacturers Association rules, car sales rose by 18% to 13,882 parts in September 2020, matched to 11,724 units in the same period. Sales of Atlas Honda and Indus Toyota showed an increase of 106% and 87%, individually, in September 2020. Sales of Pak Suzuki descended by 20% from 8,157 units last year to 6,491 units throughout in September 2020.

The online cab-hailing and food purchase company, Careem, has declared that it will boost its workers to work remotely from home. The company currently has 0.5 million cars and two-wheeler engineers in Pakistan. Careem has acquired US$ 80 million in Pakistan, with a complete workforce of about 450 workers.

The ‘World Economic Outlook’ report by the (IMF) divined a bleak outlook for the Pakistani economy, declaring that it would only grow by 1%, an increase may cross above 10%, and the lay-off rate could further jump by the end of the current fiscal year. According to the FMI report, Pakistan’s earnings, which contracted by 0.4% last FY, is projected to rise by 1% during the current FY, which is less than the real dummy of 2.1%.

In a recent recall, the CEO of the state-owned Pakistan International Airlines (PIA) has announced that the airline has experienced a loss in the current year due chiefly to the COVID-19 related lockdown and discontinuing of services.

The growth of the large-scale development (LSM) industries slowed down to 1.2% in August 2020. The LSM had sector recorded a 5% YoY growth last month. Still, 8 out of 15 major industries showed negative production, while seven enterprises showed a 2% to 15% growth on a YoY foundation. Sectors that posted positive growth added Textiles, non-metallic metals, humus, food, tobacco and drinks, elements, paper & board and rubber products. Industries that recorded a decline in a generation are coke and oil, pharmaceutical, iron and steel products, automobiles, electronics, leather funds, engineering goods and wood outcomes in August 2020 on a YoY basis.

Economic outlook

The first British Airways soaring to Lahore in higher than 40 years came last week, marking a resumption of direct flights between Heathrow and Lahore.

FDI in Pakistan hit a 6-month high at US$ 189 million as funds inflows assigned to different sectors, individually in oil and gas research and energy generation. However, the FDI descended by 24% in the first portion of the current FY matched to US$ 545.5 million in the same period last year. Notable investors are Norway, China, Hong Kong, Malta, and the Netherlands. The potential sector brought the most FDI of US$ 113.3 million, followed by financial business and oil and gas research during the 1st quarter of the current FY.

Short term opportunities

Flemish troops write to the post to develop the grounds for opening the market when Pakistan normalizes again. Pakistani systems have started reaching this office with new trade leads, which continue to FIT.

Long term opportunities

Apart from the healthcare & healing and building & construction divisions, the long-term opportunities for Flemish lands would depend on the offer and expertise of the Flanders area, which is already well appreciated in Pakistan (steel, metals, chemicals, raw supplies, industrial appliances, and goods, etc.)

Dossier Coronavirus

The coronavirus has global contact, not only on health but also on the market place. Your shipping may also be affected or even hindered. FIT controls the ventures daily, and our foreign network notifies you about all the implications for Flemish exporters on their foreign activities.

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He stated that the first coronavirus case was diagnosed on 20th February 2020 and then converted into 26 cases till 13th march 2020 resulted in a lockdown.

“We closed all those places such as parade areas, cricket grounds, universities, colleges, and factories that could be the source of gatherings. We implemented lockdown in Pakistan from 13^th March 2020 so that the coronavirus would not spread rapidly. We were facing a major problem and that was our labor community. Our laborers were facing huge setback during lockdown. In consideration to the situation of all the other countries, we developed National Command & Operation Center under the supervision of Dr.Asad Umer”, he added.

Imran Khan said we previously unlocked Phase 1 of the construction sector and now after mutual discussion with all the provinces we are exempting all other industries associated with the Construction Industry. Many people are saying that why we are lifting this lockdown when COVID-19 curve is increasing rapidly in Pakistan?

So the answer is we cannot define the peak of coronavirus and taking this initiative because we are in serious condition nowadays. In the light of the current situation of our daily wagers, Rickshaw Drivers, Taxi Drivers, and Small Shop Owners we are forced to ease this situation. We are afraid that all our SMEs didn’t get a huge setback after the lockdown is eased.

“If we found serious repercussions after the lockdown, then we will resume lockdown again” he warned.

“We have given many COVID-19 relief packages in the form of Chota Karobar Scheme, Construction Incentive Package, and Ehsas Program etc. We didn’t give such huge amount of money in our history. We are not able to carry this prolong because the tax amount is decreasing down the order and reached to almost 35%. How could we carry on like this?” the Prime Minister warned.

He said that the Government was already in serious economic conditions before the COVID-19 pandemic. Government is spending too much money on Relief packages as compared to Indian Government as we all know that all our sectors are facing huge problems

“After the lockdown is eased, we all have to act upon the SOPs declared by the Government. Every Sector should have the pre-planned SOPs. Now it’s our responsibility that those industries that are exempted from the lockdown should follow the SOPs. We will not ask Police to reinforce SOPs by force”, the Prime Minister added.

Minister for Planning and Development Asad Umar announced six major decisions taken by the Government

• More sectors related to the Construction sector will be resumed.
• Selected OPDs will be resumed for the treatment of potential diseases and ailments.
• Markets will open from Sehri till 5pm.
• Markets will face two days strict lockdown per week.
• Small markets will be exempted from the lockdown.  
• Schools will remain close till 15^th July.

Exempted Industries and Production Units from the Lockdown:

After the mutual consensus from all the provinces of Pakistan, the Government has been able to make some huge decisions:

1. Essential services such as Food items, Pharmaceutical industry, Phase 1 of the Construction industry, and shops had already been exempted from the lockdown.
2. From Saturday, industries and shops that are associated with them such as Pipe Mills including PVC and Steel Pipes, Paint manufacturing units, Ceramics, Sanitary ware, Tiles, Electrical cables and Switch gear manufacturing units, Steel & Aluminum manufacturing units will also be exempted from the lockdown.
3. If going towards the retail side, then Hardware Stores will also be exempted from the lockdown.
4. Stores and shops in the rural areas will also get exemption.
5. The Markets and Shops in the localities will also be exempted.
6. Time Duration will be from Sehri to 5pm (PST)
7. 2 Days strict lockdown will be implemented in a week for these sectors. But in these two days of strict lockdown, pharmacies, grocery stores, and those industries that are in continuous process will be exempted.

Verdict for Educational Sector:

Two decisions have been taken by the Government of Pakistan for the Education Sector

• All the educational sectors including schools, colleges, and universities will remain close till 15^th July 2020.
• All the board examinations have been cancelled permanently. All the examinations of the board classes including 9^th, 10th, 1st, and 2^nd year will not be conducted. Promotion to the next class depends on the previous year results.

Verdict for Overseas Pakistanis:

20,000 Overseas Pakistanis have been reached safely to Pakistan through our special air services. 1, 20000 Overseas Pakistanis and those laborers who got fired from their employment in Gulf Countries have also been registered.The numbers are increasingly rapidly as the Eid-ul-Fitr comes in near about.

Every week 7,000 Overseas Pakistanis have been reaching Pakistan safe and sound. Next week from 11^th May 2020, 7500 Overseas Pakistanis would be reached Pakistan through 32 flights.

Pakistanis from America, Malaysia, Bangladesh, Nepal, Australia, Canada, Iraq, and Canada will also be covered soon.

There are two main points because of which Government of Pakistan is not entertaining overseas Pakistanis more frequently?

• According to the Health Advisory Committee, it is necessary that we should test every Overseas Pakistanis after arrival and place them into Quarantine Centers for some time. COVID tests should be conducted and then reports would be generated. We have the capacity to entertain only 7,500 Overseas Pakistanis per week. But the Government is increasing this capacity as soon as possible.
• After the consensus from all the provinces of Pakistan, Self Quarantine factor will be deployed by the Government of Pakistan. In this way 14,000 Overseas Pakistani could be able to reach easily.

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This GST abdication will implement on sales worth PKR 50 million annually and it will be handed over to property developers, promoters, and retailers in order to enhance the aura of construction in ICT.  

All the minimal-cost projects associated with Pakistan Development Authority (PDA) will also be authorized to this waiver. However, all the builders, retailers, and promoters that are benefiting from the waivers won’t be permitted to file tax alterations or refund claims.

Federal Board of Revenue (FBR) has altered the ICT ordinance 2001. Under this alteration, all the revenue generated from the construction projects worth PKR 50 Million including all the projects that are industrial in nature has been exempted from GST. Likewise, all the property dealers, promoters, and developers have also been exempted from the GST. 

FBR officials and the Government of Pakistan are hopeful that this initiative will get a huge success for the construction sector in the upcoming days. In return, the economy of the country will get a lucrative approach. In a nutshell, these types of remunerations from the Government of Pakistan are eliminating all the setbacks and in return creating thousands of job opportunities throughout the country.  Thus, all the advancements in the construction industry will cater to 70 industries like steel, cement, paint, hardware, plumbing, electrical wiring and equipment, and home appliances.

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Pakistan is also combating with this calamity by focusing mainly on laborers, small businesses, and the families associated with them. Laborers are the ones who are actually fighting like a warrior in this crucial stage of Lockdown because their only source of income is their per day wage. Prime Minister Imran Khan along with his Cabinet is fully aligned towards generating the right policies in order to release the economy from the deficit. In order to stabilize the economy, Imran Khan developed some optimistic policies for the construction sector that leads to A positive breakthrough for Real Estate Sector amid Coronavirus (COVID-19) pandemic. It all stands testimony to the vision of the prime minister of Pakistan that the Construction Industry got remunerations as Incentive Package.

Many positive initiatives have been taken by the Government of Pakistan to strengthen small businesses and daily wagers during this pandemic situation. Economic Coordination Committee (ECC) and the Federal Cabinet mutually declared acceptance for the Government’s COVID-19 relief package in order to reinforce the daily wagers and the small businesses.

Also Read: Nisab set at PKR 46,329 for Zakat Deduction

On 27^th April 2020, Hammad Azhar who is currently serving Industries and Production Ministry declared the issuance of a package by Economic Coordination Committee in a press conference. This budget is finalized as a COVID-19 relief package for small businesses, often referred to as SMEs. This budget will also be a savior for all the laborers and unemployed persons who have been laid off due to coronavirus.

COVID-19 Relief Package for Small Businesses in Pakistan

Under the mutual alliance of the Economic Coordination Committee and the Ministry of Industries & Production, they proclaimed “Chota Karobar Imdadi Package”. This package will get a huge plus for all the small businesses and small enterprises. From this package, all the 3.5 million SMEs will get a Financial Asylum from the Government of Pakistan.

Regarding SMEs, all the commercial connections with up to 5KW consumption or an industrial connection with up to 70KW consumption will be entertained in this package. The government of Pakistan will pay their electricity bill of three months prior from May 2020 to July 2020.

The main purpose of this scheme is to give financial hope to all those small business owners who have been fallen prey to this unwanted situation. A protocol is initiated that the electricity bills will be calculated on the account of previous year’s month i.e. May, June, and July. In case, the data is not available then Government will go for an average. So Chota karobar Imdadi Package will remain active for a time span of 6 months initiating from May 2020. And the remuneration along with this package will be entertained during this time span.

The Nation: It is appropriate to announce that the Ministry of Industries and Production declared this Relief Package with proper interconnection from SMEDA (Small and Medium Enterprises Development Authority).

So if you are a small, micro and medium scale business owner and looking forward to avail this package then you have to give in your pre-paid electricity bills for the past three months.

Hammad Azhar shared that all the four provinces of Pakistan including Gilgit Baltistan and Azad Jammu and Kashmir will be felicitous from “Chota Karobar Imdadi Package”. In addition to it, the package will benefit 10.7 million households in the country, out of 60 million households in total.  

COVID-19 Relief Package for Daily Wage Earners or Laborers:

Due to the increasing number of coronavirus cases in Pakistan, all the companies either huge scale or small scale are now working remotely in order to cope with this COVID-19 pandemic. Likewise, most of the factories, industries, retail outlets, and production houses are suffering from huge losses due to this lockdown situation in Pakistan. So this package will be a benefit for those who have been unemployed due to COVID-19 pandemic. Those unemployed personnel will get PKR 12,000 in installments; further details would be shared on the website.

Hammad Azhar told in a press conference on 27^th April 2020 that the amount of PKR75 Billion has been allocated for the laborers who got serious repercussions amid COVID-19 pandemic in terms of labor. The amount worth PKR12000 will be given to those laborers who didn’t get that amount previously from Government Ehsass Emergency Cash Program. This initiative will cover at least 4 to 6 million deserving daily wagers or laborers. He further added that Government is going to deploy an online portal for the registration of laborers or daily wagers. The registration process is quite simple and hardly takes 2 to 3 minutes. After the data has been collected through registration, Ehsas Program filters will be run that would target the amount.

It is appropriate to mention that more than 4 to 6 million daily wagers and laborers will get a huge benefit from this package in addition to 1,2000000 recipients from the Ehsas Program. In Ehsas program more than 12 million houses have already privileged with PKR 12,000. 

Stay tuned in to Indigo Developer’s Blog and find out all the latest news and information regarding Construction Updates, Real Estate Sector, Advanced house décor, Advanced Construction Trends, Government Policies, and Constructor/Developer perspectives.

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The authority claimed that the 2.5 % zakat will be deducted from those Saving Accounts carrying more than PKR 46,329 balance. State Bank of Pakistan has issued a notification that the Banks and Financial Institutions will deduct 2.5% Zakat on all the Saving Accounts from the 1^st day of Ramadan depends on the sighting of the moon.

There had been seen an increase of PKR 1,914 in this year’s Zakat Nisab due to the incremented prices of silver and gold. It is higher than the previous year which was PKR 44,415.

Nisab is estimated as per the prices of Gold and Silver. The amount gathered in the name of Zakat is divided among all the poor and the needy in Pakistan. According to sources, the Government attained PKR 17.7 Billion after the deduction of zakat from the bank accounts in three years 2015-2017 consecutively.

Zakat Implications:

1. Saving Accounts more than PKR 46,329 balance
2. Products maintained by Asset Management Companies
3. Products maintained by Banks
4. Products maintained by Financial Entities

Exemption:                                        

• Those people who have an account balance less than the prescribed Nisab will be exempted from this deduction.
• Those people who have submitted Zakat Exemption certificate will be exempted
• Customers having current accounts will also be exempted from this deduction

The 2.5% deduction will be operational from 1^st day of Ramadan, which will fall from the 25^th of April 2020.

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Federal Minister of Industries and Production Hammad Azhar explained who is exempted from two weeks extended lockdown after Imran Khan gave his final verdict.

Exempted Low Risk Industries under two weeks extended Lockdown

The following mentioned below have now been included in the exemption list from locked down:

• Chemical Manufacturing plants
• Construction Industry
• E-Commerce for export and essential E-Commerce locally
• Software Development Firms
• Paper and packaging
• Cement plants
• Mines and mining
• Fertilizer plants
• Washer man, dry cleaner and laundry services
• Industries that have labor on their premises
• Nurseries
• Machinery making units for agriculture
• Glass manufacturing
• Veterinary Services
• Books and Stationery Stores
• Export Industries with export orders verified by trade boards
• Electricians, Plumbers, Barbers, Tailors, hawkers and Vendors are to be opened in Islamabad, KPK and Punjab only. (Other provinces did not agree to open)

This is an ongoing process, and Government will review before Ramadan and see what else can be included in the exemption list.

Construction sectors to be opened in phases:

• Bricks, cement, crushing plants, pre-fabricated materials and other fundamentals will be opened immediately in Phase 1
• Construction sites will be opened immediately in KPK and Punjab. Baluchistan Sindh and GB have different opinions

SOP’s have been made for all the industries to be opened today.

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Just knowing a few transactions in your locality does not mean that you see the trend. There are only a few property agents who work honestly and straightforwardly advise their clients to hold their property knowing the dull direction in your locality, and if the trend is upwards and your demand attractive for many real estate buyers, then retaining your property for some months sounds good.

We at Indigo Developers have a goal to let our clients know current property markets trend, is it staying neutral, accelerating, or going down. We advise our customers to wait if they want more value out of their property, provided direction is upwards. On the other hand, if the property market trend is falling, we recommend selling if gets a proper bid.

Sharing the prevailing real estate market trend honestly involves your commitment to professionalism and earning a reasonable profit is a daring responsibility, which only a few can afford to adopt.

Whether you want to purchase or sell your property we at Indigo Developers urge you to visit our real estate experts to book your consultancy meeting; please fill out our feedback form mention your property area, locality, and other necessary stuff to have an evaluation from our side.

Property owners are also advised to review latest LDA rules, as LDA has revised those rules and relaxed height limits too. So if you own a house or plot and about to start construction then redesign your plan according to LDA rules 2019 and you can add more stories, turning your property in to a multi-family apartment, student, or a female hostel.

If you feel that your real estate location is strategic and ideal for apartments, student housing or female hostel you can always contact Indigo Developers for professional and sincere advice.

The post Real Estate Market Trend — A Key Factor for Property Sale or Purchase appeared first on Indigo Developers.

But grabbing a new hotel room at Indigo Heights Hotel & Suites in Gulberg Lahore at previously Stadium Road or Shahrah-e-Noor Jehan or known as Noor Jehan Road may prove a windfall because of its strategic and commercial importance due to the following factors.

1- High-End Posh Area

2- Close to Educational, Recreational, Commercial, and Health Centres

3- Walking Distance from Famous Liberty Market and Hussain Chowk at MM. Alam Road

4- 24-Hours access to Transport, Metro Bus Service, and Lahore International Airport

5- Ideal Tourists Hub to explore Lahore’s modern outlook, enjoy traditional Pakistani and International Pan Asian cuisines

Investing in high-rise multipurpose hospitality project that offers both luxury suites and hotel rooms in Downtown Gulberg, Lahore surely gives you attractive returns on your investment, without any waiting period as the area is densely populated and high-rise buildings are a massive success for smart real estate investors provided location is position perfect.

Surrounding posh localities of DHA, Cavalry Ground, and Model Town makes Indigo Heights in Gulberg Lahore as a golden opportunity for investment in the hospitality sector in Pakistan.

Real estate is pretty dull due to curbing black money and broadening tax payer’s base all the macroeconomic fundamentals also deteriorating, and more recently Occupied Kashmir has become a flashpoint between India and Pakistan.

Intelligent and smart real estate investor should turn to hospitality projects in Gulberg, Lahore. Indigo Heights Hotel & Suites close to Hussain Chowk is offering lucrative investment options in hotel rooms.

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The problem of Pakistan is not the scarcity of resources, but unwillingness on the part of policymakers to tap the same, properly utilize and manage their equitable distribution, absence of effective administrative and justice systems to check socio-economic injustice.

A recent research survey has indicated that after the amendments in the Income Tax Ordinance-2001, over 16,000 out of 18,500 real estate developers have winded up their operations in the local real estate market.

Pakistan real estate market is continuously losing its value, and a fall in property prices can be seen across the board mo matter its Lahore Karachi, Islamabad.  We believe that real estate is currently going through an unprecedented phase where the actual transactions of property have come to a standstill. The effects of amendments in Income Tax Ordinance-2001 regarding property valuation are becoming visible, and especially as the third quarter has ended. The demand in the real estate market is continually weakening, and investors are just speculating with no aim to invest.

Real estate is like a commodity in our country; speculative investors buy property in bulk and then sell it later at an unreasonable profit.  A careful and robust way is required when determining to invest in residential or commercial real estate. Location of a project plays a primary role in determining the market value. Investors should avoid suburban areas and have a low geographic location, as those assets are more vulnerable for false price appreciation and the transaction took place only in the form of file transfers rather than changing of ownership.

One of the prime causes for sky-high property prices in Pakistan was the unrestricted inflow of black money in the real estate sector. It was the usual routine to buy properties in Pakistan with black money. But FBR now asks the source of income; therefore real estate sector is not a safe haven anymore for black money. As the influx of black money has stopped, the property prices are in free fall.

Future of Pakistan Real Estate Sector

Property prices in Pakistan will continue to fall this year, stagnant in 2017, and will start to show gradual gains in 2018. In 2025, property prices will be back to the pre-budget 2016 level. The real estate market is not expected to return to normalcy until the next elected government. The market has been down by about 35 percent since January 2018, and the activity level is low. Realtors fear the market can come down to 50 % then prevailing market value  

NON-FILERS Buyers/Purchasers:

From now onwards, Non-filers persons can purchase property worth PKR 5 million or more subject to the rules laid below.

Non-Filer buyer of the property is bound to file returns within the range of 45 days. The time range will start from the day of the property bought. If the Non-filer buyer of the property fails to file the return within the specified range, an automated assessment will be carried out to question his income source. And the non-filer buyer will have to pay 5% net property amount as a fine or penalty. The percentage will be applied as per the Federal Board of Revenue prevailing rates.

If a purchaser of the property buys property worth PKR 5 million or more, then its mandatory for him to disclose his source of income and property transaction must be through banks. The real estate prices in Pakistan was enjoying an upward trend until 2016. After that, the property market is witnessing rates saw a consistent recession.  We expect that the property prices will keep on falling, of a further 40-50% decrease in the real estate prices.

What is the Best Real Estate Investment in Fragile economy plus Border Situation

Smart Investors should stay focused to invest in downtown Gulberg properties, apartments, and hotel rooms, as they must be knowing that annual growth of Gulberg Real Estate is 20% to 30% on the minimum side plus there are always buyers in this area.

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Thanks to a new generation of passionate, millenarian travelers and growing competition brought on by the ever-evolving sharing economy, the industry is upping its game to a rapidly changing clientele. To better understand these trends, experts consulted hospitality specialists to see if these modernizations will last or lose interest sooner. From sophisticated in-room technology to a more interactive customer service experience, these are the top hospitality trends to look out for in 2018.

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