Hi,
I am glad you have pin pointed no.1 issue. Pakistan needs industry & exports but all the money is being poured into real estate. That money should have been invested in industry, stock exchange, banking sector, agriculture, anything that could help the economy but that money is going into real estate which has ZERO benefit to the country's economy.
Now we have identified the issue. Now let's see why people are investing in real estate only. Why not trend of investing in small & medium businesses as in our neighborhood. Problem is current Laws are made to facilitate the "powerful" people in real estate. Pakistan is a country which is in dire need of Tax collection as well as exports. We are putting higher taxes on Export oriented industries while ignoring taxes on most wealthiest sector that's real estate. There is negligible holding tax on plots. There is no incremental tax on multiple plots on the name of a single individual. Whatever tax currently applies is very low comparing to the wealth involved. How much Tax Bahria Towns & DHAs give back to govt is also unknown. These entities and other housing societies must give maximum Tax to the govts. Once we put high Taxes on individuals with multiple plots and on housing societies then automatically this trend will normalize and people will tend to invest on other areas. (Also larger housing societies must invest in green energy and fullfill atleast 30% of their power consumption on their own. They keep expanding and adding burden on national power grid. Law should be made to put net metering on every new house above 10 marlas. )
Now, lets see What are the factors that despite Govt needs maximum Tax collection still unable to add such taxes on real estate. The reason is powerful people will not let it do so. No body questions them. Powerful people like Malik Riaz. Just one small example how he worked up, Corp commander Lahore unlawfully suspended construction of a commercial building which was across the road from Corp commander house Lahore (Jinnah house). The same building was later acquired by Malik Riaz and he was not stopped. The top floor penthouses were gifted to General. Now if military personal backs up such people then what innovation we are going to bring in our country. The current revelation on "Declared" number of plots of a single family member brings the question that who can dare to Put incremental or higher taxes on holding multiple plots. That all wealth sitting around and being not contributing for country's economy!
On top, the military itself has built entities like Askari Real Estate (awt.com.pk/home/askari_real_estate) and DHAs. The interest of military in real estate is not hidden anymore. The Generals instead of being interested in housing, should develop their interest in Startups & innovation. Military being the lion's share taker of Tax-payers money can play its part. It needs to give projects to local industry, atleast at the small level (whichever it can, whichever industry exists). We have to start from somewhere. For instance, military can give atleast IT projects to local IT industry. As basic as websites. Look at Pakistan Navy official website. Imagine its developed by IT department of Navy. Literally, class 8th student can make better website then this total crap. Any IT company in Pak will make 1000 times better and cost effectively. Why military over-employs itself and NOT Give projects to local private IT industry? Similarly, the crappy videos / marketing material which entire Army / Navy / Airforce makes is atleast 2 decades below the current standard. I can give tons of mistakes in spellings, font selection, quality, edges, everything is wrong in marketing material of our defense products by our SOEs & military orgs. Frankly, this is not their job, you don't have to add employees for every task, you have to downsize and you have to support local pvt industry by giving them projects. Its nation's money being circulated among the nation which will boost our industry.
I think the entire nation including the military needs to change their mindset of obsession about housing and contribute in local startups.