ISLAMABAD: Finance Minister Muhammad Aurangzeb on Saturday directed key institutions to undertake targeted reform workstreams to strengthen taxation, regulatory processes, and market development within the existing framework, as part of incentivising and facilitating the growth of Real Estate Investment Trusts (REITs).

The minister stressed a coordinated, outcome-oriented reform approach focused on actionable steps within existing institutional frameworks. The direction came during a virtual meeting of the REITs’ focus group on Saturday.

The meeting brought together key stakeholders from the public and private sectors to deliberate on measures to strengthen the REIT framework and enhance its contribution to economic activity and capital market development. An official announcement said that the minister assigned specific review tasks to the Securities and Exchange Commission of Pakistan, REIT issuers, market participants, and the Tax Policy Office (TPO) to deliver actionable proposals in their respective domains. The discussion covered key areas central to the growth and scalability of the REIT sector.

Participants deliberated on refining the taxation framework, streamlining processes to facilitate REIT issuers, and strengthening the overall market ecosystem to enhance investor participation, particularly from retail segments. Emphasis was placed on maintaining a balanced, predictable, and investment-friendly enabling environment.

The participants noted that while the REIT market in Pakistan has made initial progress, significant potential remains to deepen its reach through targeted policy measures and improved coordination. Addressing procedural inefficiencies, ensuring clarity in regulatory requirements, and fostering alignment among stakeholders were identified as critical to unlocking this potential, it was also pointed out.

Mr Aurangzeb observed that REITs provide a structured and transparent mechanism for channelising real estate investments into productive sectors of the economy. He highlighted their role in promoting documentation and supporting the formalisation of the real estate, construction, and development sectors, as well as improving capital allocation and economic activity.

Moreover, the group discussions also focused on broadening investor participation and improving market depth. Enhancing investor awareness, strengthening confidence in REIT instruments, and ensuring efficient secondary market functioning were highlighted as key to facilitating investor entry and exit and sustaining market growth.

The meeting emphasised the need to align the REIT framework with evolving international practices while maintaining simplicity, clarity, and ease of implementation. Participants stressed the importance of adopting pragmatic and well-calibrated measures that effectively support market development without adding unnecessary complexity.

The minister underscored the importance of continued and structured consultation to ensure that reform efforts remain responsive to market needs, grounded in practical considerations, and aligned with broader economic objectives. He reaffirmed the government’s commitment to fostering a facilitative, transparent, and predictable policy environment that encourages investment, supports innovation, and strengthens Pakistan’s capital markets.

Published in Dawn, May 3rd, 2026