A prominent Pakistani estate developer, Shafiq Akbar, has proposed that Pakistani authorities take inspiration from Saudi Arabia’s real estate development model to attract foreign investment and address the country’s housing needs.
Speaking at the Cityscape Global public-private partnership forum in Riyadh, Akbar emphasized Pakistan’s potential for $40 billion in investments in the housing sector. Pakistan currently faces a housing shortage of around ten million units, with a significant portion in urban areas.
The housing and real estate sectors are considered vital to Pakistan’s economic health, particularly in addressing the housing deficit.
Akbar praised Saudi Arabia’s approach to mapping the potential within its land and creating mega real estate projects that encompass tourism, cultural heritage, and other aspects, attracting global attention and investments.
Saudi Arabia’s national tourism strategy, aimed at welcoming 100 million tourists annually by 2030, requires a substantial investment of $1 trillion. Akbar suggested that Pakistan, with its larger population and strong housing demand, could adopt a similar strategy to boost its economy.
To encourage foreign investment and address the housing crisis, Akbar recommended introducing “economic engines” in Pakistan, such as industrial cities, tourist destinations, and health, education, and tech cities.
These projects could help make the country’s human resources more productive and provide housing for the growing population. Akbar proposed creating a comprehensive master plan for Pakistan’s development over the next 20 to 25 years, envisioning the country as the fastest-growing economy globally.
However, he expressed concerns about the shrinking foreign investment in Pakistan’s real estate sector, with only $25 billion invested in 2021, and a significant portion trapped in “illegal” or “infeasible” projects. The decline in real estate investment has also impacted remittances from overseas Pakistanis.
Akbar emphasized that a relatively small area of Pakistan could accommodate 20 million housing units over the next two decades with a $40 billion investment, offering a promising opportunity for growth and development.