ISLAMABAD, Jan 23: A meeting of the finance ministry, Securities and Exchange Commission of Pakistan (SECP) and Central Board of Revenue (CBR) here on Monday approved the SECP-formulated draft of Real Estate Investment Trusts (REITs) Rules in Pakistan.

The rules would be issued after vetting by the Ministry of Law and Justice.

Presided over by Dr Salman Shah, adviser to the prime minister on finance, the meeting decided that the CBR and the provincial governments would take necessary steps to carry out adjustments in tax and duty rates in order to facilitate working of the REITs throughout the country.

The meeting was convened to formulate rules in order to implement the policy directives of the prime minister for introducing transparent and practical rules for promoting investment in the real estate business.

The meeting discussed various recommendations formulated by the SECP for REITs before their approval. State Minister for Finance Omar Ayub, Secretary General Finance Naveed Ahsan and officials of CBR, SECP, Finance Division and Union Bank were also present.

“The REITs will be specialized investment vehicles,” Dr Salman said and added that the development of REITs would ensure enabling fiscal and legal environment conducive to reduction in transaction cost, simplification of procedure, transparency in real estate transaction and tax incentives for all stakeholders including investors, sponsors and real estate participants.

He said that the requisite changes to enabling fiscal and legal environment should be implemented in Islamabad Capital Territory (ICT), which will serve as a model for the provincial governments to emulate.