KARACHI: Pakistan has created its first Real Estate Investment Trust (REIT) after a span of six years, as the country tries to improve its regulatory environment and provide incentives to the domestic construction industry.
The REIT was set up by Arif Habib Dolmen REIT Management Limited, which launched a similar initiative in Pakistan in 2015.
“We have created the Silk Islamic Development REIT last month,” Muhammad Ejaz, chief executive officer of the company, told Arab News over the phone from Toronto, Canada. “The process for the creation of Silk World Islamic REIT is also underway.”
The company is planning to raise about Rs8 billion ($50 million) through private placements in both REITs for housing projects in Karachi’s Surjani area where about 146 acres of land will be developed into commercial and residential units.
“As far as our planning is concerned, we are surveying the market to identify the right product time and the optimal product mix. Once that is done, we will engage our product designer,” Ejaz said.
The company is hoping to offer the two REITs for sales within 18 months, following the completion of regulatory approvals, property transfers, market study and environment impact assessment.
“The whole process of approval, including the NOCs [No Objection Certificates] and environmental impact studies, is expected to take around nine to 10 months. We are confident to introduce this in the market within 12 to 18 months,” he said.
Asked about the expected returns on investment, Ejaz said the company was targeting between 18 and 25 percent of internal rate of return (IRR).
The existing Arif Habib Dolmen City REIT, which owns Karachi’s prominent Dolmen Mall and office tower, has announced a dividend yield of Rs1.24 per unit or 12.4 percent for the year that ended June 30, 2021, according to a company announcement.
Pakistan is currently facing an overall housing backlog of 10-12 million units. To fill the widening gap, Prime Minister Imran Khan had promised to construct five million houses and offer various incentives to the construction sector to achieve the target.
These incentives were announced in April 2020 and included a tax amnesty scheme for the construction sector that barred the authorities from questioning investors, builders and buyers about their sources of income if they put cash in the real estate business.
Ejaz said the government had substantially encouraged development activities in the country which had invited huge interest from investors.
“There are three major factors behind our decision to launch these REIT: The first is the facilitation of the central bank that has made it easier for other banks to participate in the real estate sector; the second is the amended regulatory framework by the Security and Exchange Commission of Pakistan which has created a conducive business environment; and the third is the Federal Board of Revenue’s decision to reduce the disadvantage of REIT as compared to the other informal construction sector,” Ejaz said.
Analysts say REITs offer huge investment opportunities to those who find it difficult to benefit from the real estate sector due to high prices.
“REITs are transparent and documented investment instruments that are made available in capital markets which encourage commoners to invest amid astronomically high real estate values,” Samiullah Tariq, director research at the Pakistan-Kuwait Investment, told Arab News on Monday, adding that it was important to rationalize the country’s tax structure to make REITs more attractive.
Pakistan planning first real estate investment trust in six years
https://arab.news/286pw
Pakistan planning first real estate investment trust in six years
- REIT set up by Arif Habib Dolmen REIT Management Limited, which launched similar initiative in 2015
- Approval process expected to take less than year, top official says REIT to be introduced in market within 12 to 18 months
Pakistan to crack down on smuggling of seeds from archrival India
- Pakistan’s food security minister says the country is falling behind India in seed quality and yield
- He says National Seed Development Authority will curb fake seeds, enforce stringent regulations
KARACHI: Pakistan said on Tuesday it would launch a crackdown on the smuggling of seeds from archrival India while emphasizing better regulation of the domestic seed market and promotion of local agricultural innovation.
The move comes amid renewed tensions between the nuclear-armed neighbors after last month’s deadly attack on Indian tourists in Pahalgam, which New Delhi blamed on Pakistan, though Islamabad denied the charge.
Both countries have since taken tit-for-tat measures against each other, downgrading bilateral trade and diplomatic ties. India has also suspended the Indus Waters Treaty (IWT), a decades-old pact governing cross-border river flows, raising food security concerns for lower riparian Pakistan in the longer run.
Pakistan’s Federal Minister for National Food Security and Research, Rana Tanveer Hussain, chaired a high-level meeting focusing on the issue, pointing out that Indian seeds were being smuggled into Pakistan and openly advertised on social media platforms.
“The Ministry is working closely with law enforcement agencies to take strict action against those involved in this illegal activity,” he said.
He also warned that the country, once ahead of India in agricultural innovation, was now falling behind.
“It is unfortunate that we now cite India’s example in seed quality and yield performance,” he added.
Hussain also raised the issue of the widespread sale of non-certified and substandard seeds in local markets, saying the authorities had banned 392 companies found guilty of distributing fake seeds.
The participants of the meeting said more than 50,000 metric tons of cotton seeds were available for the upcoming season, nearly meeting the total requirement of 53,796 metric tons and easing concerns about shortages.
According to a statement circulated after the meeting, the minister addressed the problem of price volatility in the seed market, saying the National Seed Development Authority had been established to monitor seed quality, prevent the sale of fake seeds and enforce stringent regulations.
He also reaffirmed the Ministry’s commitment to protecting farmers’ rights, ensuring food security, and transforming the agriculture sector through transparency, regulation and innovation.
Delegation from Pakistan’s top military university in UAE to discuss academic collaboration
- Delegation members are representatives of National Defense University, Pakistan’s leading military educational institute
- Pakistani delegation will meet UAE officials, think tanks and other institutions during visit, says Pakistan embassy in Abu Dhabi
ISLAMABAD: A delegation of senior Pakistani military and civil officers has arrived in the United Arab Emirates (UAE) to enhance bilateral dialogue, academic cooperation and understanding between the two nations, the Pakistan embassy in Abu Dhabi said on Tuesday.
The delegation are representatives of the National Defense University, Pakistan’s leading military educational institute situated in Islamabad, the embassy said in a statement. It added that the delegation comprises senior military and civil service officers, including those from friendly countries as well.
“The Embassy of Pakistan in Abu Dhabi hosted a delegation of National Security and War Course (NSWC) of the National Defense University (NDU), Islamabad, during their foreign study visit to the United Arab Emirates (UAE),” the embassy said in its statement.
“The visit aims to enhance bilateral dialogue, academic collaboration, and mutual understanding between Pakistan and the UAE.”
Pakistan’s Ambassador to the UAE Faisal Niaz Tirmizi welcomed the delegation, stressing the significance of these exchanges in deepening bilateral cooperation. He stated that the visit also reflects our commitment to strengthening the historic Pakistan-UAE partnership, the embassy said.
“During their visit, the delegation will have high-level interactions with UAE government officials, think tanks, and other institutions of UAE,” the statement said.
The UAE is Pakistan’s third-largest trading partner after China and the United States, and a major source of foreign investment valued at over $10 billion in the last 20 years, according to the UAE foreign ministry.
It is also home to more than a million Pakistani expatriates. Policymakers in Pakistan consider the UAE an optimal export destination due to its geographical proximity, which minimizes transportation and freight costs while facilitating commercial transactions.
The two nations have stepped up efforts in recent years to strengthen their business and investment ties. In January 2024, Pakistan and the UAE signed multiple agreements worth more than $3 billion for cooperation in railways, economic zones and infrastructure.
Pakistan, Bangladesh resolve to strengthen bilateral ties, maintain high-level contacts
- Pakistan’s Foreign Minister Ishaq Dar speaks to Bangladesh Foreign Affairs Adviser Touhid Hossain, says state media
- Islamabad and Dhaka have attempted to rebuild bitter relations since ouster of Sheikh Hasina’s government last year
ISLAMABAD: Pakistan’s Foreign Minister Ishaq Dar agreed to strengthen bilateral relationship with Bangladesh and maintain high-level contacts with its leadership, state-run media reported on Tuesday, as Islamabad looks to forge closer ties with the Muhammad Yunus-led government.
Pakistan and Bangladesh, once one nation, split after a brutal 1971 war with Dhaka drawing closer to Islamabad’s arch-rival New Delhi. However, long-time Bangladeshi prime minister Sheikh Hasina was ousted after her government was overthrown in August 2024. She fled via helicopter to India as Dhaka attempts to extradite her.
Relations between India and Bangladesh’s interim government have been frosty since then, allowing Islamabad and Dhaka to rebuild ties slowly. Dar spoke to Touhid Hossain, Bangladesh’s foreign affairs adviser, over the telephone on Monday, Pakistani state broadcaster said.
“Pakistan and Bangladesh have reaffirmed their mutual commitment to further strengthen bilateral relations and maintain regular high-level engagements,” Radio Pakistan reported.
Direct private trade between the countries restarted in November 2024, when a container ship sailed from Pakistan’s Karachi to Bangladesh’s Chittagong. It was the first cargo ship in decades to sail directly between the countries.
Dar discussed Pakistan’s increased regional tensions with India during his conversation with Hossain, in light of New Delhi’s “unfounded” allegations it was involved in an attack last month in Indian-administered Kashmir.
Gunmen killed 26 tourists in Pahalgam tourist resort on April 22, straining ties between the two nations as India blamed Pakistan for backing the attack. Islamabad denied involvement and has asked New Delhi to share proof to substantiate its claims, something it hasn’t done yet.
“The Bangladeshi Foreign Affairs Adviser expressed concern over the current situation and emphasized the need for de-escalation and exercising restraint by all parties,” Radio Pakistan said.
India and Pakistan — carved out of the subcontinent at the chaotic end of British colonial rule in 1947— have fought multiple wars and remain bitter foes. The two countries claim the disputed Himalayan territory of Kashmir in full but govern only parts of it separated by a Line of Control (LoC) de facto border.
Peshawar Zalmi thrash Multan Sultans by 7 wickets, keep PSL playoff hopes alive
- Zalmi all-rounder Ahmad Daniyal returns figures of 3/17, Luke Wood and Maaz Sadaqat take two wickets each
- Peshawar will next face Karachi Kings on Wednesday and two-time champions Lahore Qalandars on Friday
ISLAMABAD: Peshawar Zalmi continued their impressive run of form on Monday by beating Multan Sultans by seven wickets at their home ground, effectively keeping their hopes of qualifying for the Pakistan Super League (PSL) playoffs stage alive.
The Sultans batted first at their home turf but were unable to impress, losing a flurry of wickets as Zalmi bowlers kept on taking breakthroughs at regular intervals. The only signs of resistance came from Shai Hope, who top-scored for the Sultans with 23 runs while middle-order batter Tayyab Tahir made 22.
Zalmi’s Ahmad Daniyal was the pick of the bowlers, returning figures of 3/17 from four overs while Luke Wood and Maaz Sadaqat picked two wickets each to ensure the Sultans were bowled out for 108 runs in 19.1 overs.
“In the 25th match of Pakistan Super League, Peshawar Zalmi defeated Multan Sultans by seven wickets in Multan last night,” Radio Pakistan reported.
Zalmi chased the total in 13 overs with seven wickets to spare. Explosive opening batter Saim Ayub scored 49 runs from 33 balls while Max Bryant remained unbeaten on 38 from 20 balls.
Zalmi captain Babar Azam scored 8 runs from 13 balls while Mitchell Owen scored only one run from two balls. For the Sultans, Shahid Aziz returned figures of 2/17 from three overs while David Willey finished with 1/9 from his single over.
The “Yellow Storm” remain at number five on the PSL points table with four wins from a total of eight matches. The top four teams will qualify for the PSL playoffs.
If Zalmi qualify for the playoffs, Azam’s team will remain the only one to qualify for every playoff since the edition began in 2016.
Zalmi will next play Karachi Kings on Thursday before taking on former two-time PSL champions Lahore Qalandars on Friday.
Pakistan army chief, Iranian FM review border management, security challenges
- Pakistan and Iran have often been at odds over instability along their shared, porous border
- Araghchi arrived in Islamabad this week to discuss surging tensions between India and Pakistan
ISLAMABAD: Army Chief General Syed Asim Munir reviewed border management and security challenges with Iran’s Foreign Minister Seyyed Abbas Araghchi this week, the Pakistan military’s media wing said, with the two sides agreeing to enhance bilateral cooperation.
Pakistan and Iran have often been at odds over instability along their shared, porous border and routinely trade blame for not rooting out militancy. Tensions surged in January last year when Pakistan and Iran exchanged airstrikes, with both claiming to target alleged militant hideouts in each other’s territory.
Araghchi arrived in Pakistan on Monday to hold talks with Pakistani leadership as Islamabad’s tensions with New Delhi surge. Iran has offered to mediate between the two nuclear-armed nations as the threat of war looms over the South Asian region.
“The meeting featured constructive discussions on the geo-strategic environment, with particular focus on challenges confronted by both countries in the domain of security,” the Inter-Services Public Relations (ISPR), the military’s media wing, said on Monday.
“The Pak-Iran border security mechanism was also reviewed as part of efforts to enhance bilateral coordination.”
The statement said both sides agreed to stay engaged for enhanced bilateral cooperation, while jointly working to assist in bringing “positive developments” in issues concerning the region.
“The Iranian FM acknowledged and appreciated Pakistan’s efforts for peace and stability in the region,” the ISPR said.
Earlier, Araghchi met Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar as the two held delegation-level talks. Dar expressed appreciation for the positive momentum in Pakistan-Iran relations and emphasized the need to expand cooperation in key areas including trade, energy, border security, and regional connectivity, state-run Radio Pakistan reported.
