Pakistan’s Rs173bn REIT sector seeks tax relief, stronger governance

October 27, 2026 (MLN): Regulated Real Estate Investment Trusts (REITs) could help formalize Pakistan’s property sector and channel investment into capital markets, provided the industry strengthens transparency, governance and tax regulations, speakers said at a Securities and Exchange Commission of Pakistan (SECP) Talk Series session.

Commissioner Imtiaz Haider said REITs could mobilize private investment for infrastructure projects, including motorways, bridges, energy parks and logistics hubs. He also highlighted the potential to unlock value from existing public assets through REIT structures and finance development initiatives.

Presentations at the session showed that Pakistan had 29 registered REIT schemes by March 2026, with an aggregate fund size of Rs173.1 billion as of December 2025. Globally, 1,021 listed REITs had a combined market capitalization of US$2.04 trillion at the end of 2024.

Zahid Latif Khan, Chairman of ISE REIT Management Company Limited, highlighted the scale of the global REIT market and presented ISE Towers Rental REIT, valued at Rs5.67 billion, as a local example.

He also outlined potential opportunities for rental, developmental, hybrid and parking REITs in Islamabad and Rawalpindi.

Muhammad Ejaz, Chief Executive of Arif Habib Dolmen REIT Management Limited, highlighted Dolmen City REIT and Globe Residency REIT as examples of Pakistan's existing REIT schemes.

He said Dolmen City REIT had a market capitalization of Rs86.88 billion as of September 30, 2026, while occupancy at both properties exceeded 97%.

Ejaz called for rationalizing property transfer duties and taxes and reviewing investment limits to facilitate the sector's expansion.

Speakers emphasized that REIT returns and liquidity are not guaranteed, as they depend on the underlying assets, scheme structures and prevailing market conditions.

They identified independent valuations, trustee oversight, transparent disclosures and greater investor awareness as essential to strengthening investor confidence in the sector.

The session was attended by SECP Chairman Dr. Kabir Ahmed Sidhu, Commissioners Imtiaz Haider, Muzaffar Ahmad Mirza and Ali Farid Khawaja, along with business leaders, students and lawyers.

The event concluded with a question-and-answer session, followed by the presentation of commemorative shields to the speakers.

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