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 calls for Gaza aid access amid Israeli push for full control
- Israel’s war on Gaza has killed around 53,000 Palestinians and displaced two million
- Pakistan says it opposes any attempts to displace Palestinians from their ancestral lands
ISLAMABAD: Pakistan’s foreign office on Friday called for the unimpeded delivery of humanitarian aid to millions of Palestinians after Israeli Prime Minister Benjamin Netanyahu announced his country’s plan to press ahead with its military campaign and take full control of the Gaza Strip.
Israel imposed a total blockade of the war-torn Palestinian territory in March, cutting off the entry of food, medicine, fuel and other essential supplies. The move triggered a deepening humanitarian crisis, with aid agencies warning of widespread malnutrition and a looming famine, particularly among children.
The blockade has drawn international condemnation, with the United Nations and human rights groups urging its immediate lifting on legal and humanitarian grounds. While Israel permitted limited aid deliveries this month, UN officials described the efforts as “a drop in the ocean” for Gaza’s 2.1 million residents.
“The expansion of Israeli ground operations in Gaza, as well as its announcement to take control of all of Gaza, poses a grave threat to efforts aimed toward achieving peace and stability in the region,” the foreign office spokesperson, Ambassador Shafqat Ali Khan, said during his weekly media briefing. “In addition, Israel also continues to deliberately obstruct critical humanitarian aid from reaching millions in dire need.”
“Pakistan reiterates its call on the international community for an immediate end to Israel’s genocidal campaign and to ensure a lasting ceasefire in Gaza,” he continued. “It also urges concrete steps toward provision of unimpeded humanitarian supplies to millions of Palestinians in dire need, as well as to hold Israel accountable for its egregious crimes.”
Khan condemned Israeli attacks on hospitals and other critical infrastructure during its military campaign.
He also maintained that Pakistan opposed any attempts to displace Palestinians from their ancestral lands, expand illegal Israeli settlements or annex any part of the occupied Palestinian territories.
The war in Gaza began in October 2023 and has so far killed about 53,000 Palestinians and displaced nearly all of Gaza’s two million residents.
Pakistan says initial probe confirms Indian involvement in school bus attack in Balochistan
- Balochistan has been the site of an insurgency for decades, though it has intensified more recently
- Islamabad says Indian ‘terror proxies’ have been tasked to accentuate their attacks in Balochistan
ISLAMABAD: Pakistan said on Friday that its initial probe into an attack on a school bus in the Balochistan province has confirmed the involvement of “Indian terror proxies,” promising to defeat the “nefarious” designs.
Balochistan has been the site of an insurgency for decades, though it has intensified more recently, with groups like the Baloch Liberation Army (BLA) carrying out high-profile attacks on civilians and security forces.
On Wednesday, at least seven people, including six children, were killed when a vehicle-borne improvised explosive device targeted the school bus en route to an army-run school in Balochistan’s Khuzdar.
Speaking at a press conference alongside a Pakistani military spokesman, Interior Secretary Khurram Muhammad Agha called the Khuzdar bombing an attack on “our values, our education and on the very fabric of our society.”
“Initial findings confirm that this attack is in continuity of a broader pattern of violence sponsored by India through Fitna Al-Hindustan (FAH) operating under the tutelage and the patronage of the Indian intelligence agency R&AW,” he said, without offering any proof to link New Delhi to Wednesday’s assault.
The Indian administration has distanced itself from the Khuzdar school bus bombing, attributing such acts of violence to Pakistan’s “internal failures.”
The FAH comprises several separatist groups and independently operating cells who have been operating in the insurgency-hit southwestern Pakistani province, according to the Pakistani officials. These cells, after having suffered immense casualties in past few years, have now resorted to hitting “soft targets.”
“The terror proxies of Hindustan [India] have been tasked to accentuate their heinous attacks of terrorism in Balochistan and elsewhere, sabotage development in the region, incite fear among the population and derail the journey of peace and development in an attempt to repeat their playbook of 1971 [a reference to the fall of Dhaka],” he said.
During the presser, Pakistani military spokesman Lt. Gen. Ahmed Sharif Chaudhry detailed various incidents of violence that he said were carried out by India-backed groups.
“Very recently the media international media has seen self-given confessions and acknowledgements of multiple surrendered terrorists of this Fitna Al-Hindustan who told that how Hindustan is funding, planning and carrying out terrorist acts in Balochistan,” he noted.
Relations between Pakistan and India touched a new low last month, when gunmen killed 26 people in Indian-administered Kashmir in an attack India blamed on Pakistan. Islamabad denies complicity and Lt Gen Chaudhry said New Delhi had still not provided any evidence to back up its accusation.
A day earlier, Pakistan’s top diplomat at the United Nations (UN) said they would raise the school bus attack at the UN and present evidence of Indian involvement to the international community.
“This was a heinous terrorist act directed against children, against students, [which is] totally unacceptable and condemnable,” Ambassador Asim Iftikhar Ahmad told Arab News in an interview.
Interior Secretary Agha said Pakistan and its people, particularly those in Balochistan, reject such “nefarious designs” and Islamabad had the capacity and will to dismantle these networks and to bring the perpetrators and their handlers to justice.
“I assure you that the state in collaboration with the provincial governments and the state apparatus will defeat them,” he said.
“These Indian sponsored terrorists have no place in Pakistan. We have the wherewithal and the commitment to bring an end to this violence. Our resolved is firm and our response will be decisive.”
Pakistan and India have a history of bitter relations and frequently accuse each other of fomenting militancy in the other’s territory. Both countries have fought three wars, two of them over Kashmir.
Pakistan to offer US firms concessions on mining investment in tariff talks, says minister
- Pakistan would put its offer of concessions for mining investment to US officials during talks over tariffs in the coming weeks
- Pakistan’s Reko Diq gold mining project in Balochistan seeks up to $2 billion in financing, including up to $1 billion from US bank
ISLAMABAD: Pakistan plans to offer concessions to US companies to invest in its mining sector as part of negotiations with Washington over tariffs, its commerce minister told Reuters, as Islamabad seeks to capitalize on the Trump administration’s interest in boosting trade with South Asia.
Pakistan faces a potential 29 percent tariff on exports to the United States due to a $3 billion trade surplus with the world’s biggest economy, under tariffs announced by Washington last month on countries around the world. Tariffs were subsequently suspended for 90 days so negotiations could take place.
Pakistan’s Commerce Minister Jam Kamal said that Islamabad will offer US businesses opportunities to invest in mining projects primarily in Pakistan’s Balochistan province through joint ventures with local companies, providing concessions like lease grants.
The minister said that would be in addition to efforts to increase imports from the United States, particularly cotton and edible oils, which are currently in short supply in Pakistan.
Pakistan would put its offer of concessions for mining investment to US officials during talks over tariffs in the coming weeks.
Kamal did not give further information on the bidding process of these mines or other details.
“There is untapped potential for US companies in Pakistan, from mining machinery to hydrocarbon ventures,” he said in an interview with Reuters conducted on Thursday.
Pakistan’s Reko Diq copper and gold mining project in Balochistan seeks up to $2 billion in financing, including $500 million to $1 billion from the US Export-Import Bank, with term sheets expected by early in the third quarter of this year, its project director told Reuters last month.
The mine could generate $70 billion in free cash flow and $90 billion in operating cash flow over its lifespan.
US President Donald Trump has said that he’s working on “big deals” with both India and Pakistan, following Washington’s key role in brokering a ceasefire between Pakistan and India earlier this month following the worst fighting in decades between the nuclear-armed neighbors.
“The previous US administration focused more on India, but Pakistan is now being recognized as a serious trade partner,” Kamal said.
Pakistan will gradually lower tariffs in its upcoming federal budget, Kamal said.
He said that the United States has not specified trade barriers or priority sectors. The US Embassy in Islamabad did not immediately respond to a request for comment.
Pakistan business confidence improves by 16% points, survey reveals
- The development comes over a week after the IMF approved a loan review for Pakistan, unlocking a $1 billion payment
- Pakistan’s stocks, which rose more than 80 percent last year, have also largely resisted the pressures in recent weeks
KARACHI: Business confidence has significantly improved among investors in Pakistan that is largely attributed to macroeconomic stability, declining inflation and anticipated improvements in business conditions over the next six months, a survey by Pakistan’s Overseas Investors Chamber of Commerce and Industry (OICCI) revealed on Thursday.
The Business Confidence Index (BCI) Survey – Wave 27, conducted across Pakistan in March-April 2025, shows the overall business confidence improved by 16 percentage points from negative 5 percent to positive 11 percent, compared to the previous Wave 26 survey in October-November 2024.
The Manufacturing sector led the recovery, improving from negative 3 percent to positive 15 percent, followed by the Retail/Wholesale sector, which rose from negative 18 percent to positive 2 percent in the latest survey. The Services sector maintained a steady outlook and jumped from 2 percent to 10 percent positive.
“The uptick in business confidence is a clear sign that our economic direction is on the right track. We are focused on creating a conducive environment for investment, supporting private sector growth, and ensuring long-term macroeconomic resilience,” Finance Minister Muhammad Aurangzeb was quoted as saying by the OICCI.
“The improved sentiment among businesses is both encouraging and a validation of our collective efforts.”
The development comes more than a week after the International Monetary Fund (IMF) approved a loan program review for Pakistan, unlocking a $1 billion payment which the State Bank of Pakistan said had been received. A fresh $1.4 billion loan was also approved under the IMF’s climate resilience fund.
Since averting a default in 2023, the South Asian country has been making rigorous efforts to boost its economy by offering various incentives to investors, particularly from abroad.
Pakistan’s stocks, which rose more than 80 percent last year, have largely resisted selling pressures in recent weeks, despite the country’s conflict with India that saw the two sides strike each other with missiles, drones and artillery.
Commenting on the survey’s findings, OICCI President Yousaf Hussain said the overall business confidence had shown a notable improvement across the business community over the past two years.
“This sharp recovery in the Business Confidence in the latest Wave 27 reflects the resilience of Pakistan’s business sector and its readiness to seize emerging growth opportunities,” he said.
“It is heartening to see positive momentum across key sectors, which reflects improved sentiment and growing trust in the country’s economic direction.”
Hussain said there must be greater policy consistency, transparency and active engagement with key stakeholders, including OICCI members, to maintain this growing positivity in the business confidence.
The BCI Wave 27 survey revealed increased optimism for the next six months, with 45 percent of the respondents expressing positive expectations.
“Key contributors to this positive outlook include economic growth, improved government policies, investment climate,” the survey report read.
“Despite the positive trend, 53 percent of the survey respondents reported a negative outlook on business conditions over the past six months, which is a substantial improvement from 66 percent negative sentiments in Wave 26. The key concerns indicated in the survey related to political stability, Rupee FX parity, Energy, and trade policies.”
The BCI of foreign investors, who OICCI members randomly selected for the survey, showed a remarkable increase from positive 6 percent to 17 percent, according to the findings.
This improvement is primarily attributed to better global business climate, an improved industry environment in Pakistan over the past six months, and expectations of increased capital investment in the coming six months.
“The latest BCI Wave 27 results were better than anticipated, with positive expectations reflected across all major sectors. Employment prospects, expansion plans, and investment expectations demonstrated notable gains, particularly in the Manufacturing and Retail sectors,” OICCI Secretary-General Abdul Aleem said.
“Despite notable improvement on the overall BCI, the new investment plans overall showed an improvement of 19 percent, but remained negative, which is an area of concern and needs to be addressed to further accelerate economic growth, energize large-scale manufacturing, trade and export.”
Pakistani Naila Kiani summits India’s highest Kanchenjunga peak, poses with national flag
- Naila Kiani reached the summit of Kanchenjunga at 6:30am local time, becoming Pakistan’s leading female mountaineer with 12 ‘eight-thousanders’ to her name
- The Dubai-based Pakistani climber stands on the threshold of joining a global elite of only 17 women who have conquered all 14 peaks above 8,000-meter height
ISLAMABAD: Dubai-based Pakistani mountaineer Naila Kiani has scaled 8,586-meter-high Kanchenjunga, the tallest peak in India, her organizer said on Friday, as the climber posed with a Pakistani flag at the summit.
Kiani has become the first Pakistani woman to scale 12 of the world’s 14 peaks above the height of 8,000 meters, according to Alpine Club of Pakistan (ACP), which arranges various expeditions.
Kiani, who stands on the threshold of joining a global elite of only 17 women who have conquered all 14 eight-thousanders, reached the Kanchenjunga summit early Friday, the Imagine Nepal expedition organizer said.
“At around 7:00 AM NPT [Nepal time], our incredible team of 10 climbers successfully summited Kanchenjunga (8,586m) — the world’s third-highest mountain,” Imagine Nepal said on Facebook.
“Naila Kiani reached the summit of Kanchenjunga at 6:30am local time, becoming Pakistan’s leading female mountaineer with 12 eight-thousanders to her name,” Alpine Club of Pakistan quoted Dawa Futi Sherpa, operations director at Imagine Nepal, as saying.
The Pakistani club said this was a “monumental milestone” in the history of Pakistani mountaineering and a moment of immense national pride.
“From the towering heights of Everest and K2 to the perilous slopes of Annapurna and Lhotse, her journey tells a powerful story of grit, resilience and an unshakable will,” the ACP said.
“This is not just a personal achievement— it is a symbol of empowerment for women in sports, a beacon of hope and inspiration for Pakistan, and a proud moment for every mountaineering enthusiast.”
Kiani has previously summited Mount Makalu (8,485m), Broad Peak (8,047 meters), Annapurna (8,091 meters), K2 (8,611 meters), Lhotse (8,516 meters), Gasherbrum 1 (8,068 meters), Gasherbrum II (8,035 meters), Nanga Parbat (8,125 meters), Mount Everest (8,849 meters), Manaslu (8,156 meters) and Cho Oyu (8,201 meters) mountains.
