Islamabad: According to a news source published on April 9th, Pakistan’s Securities and Exchange Commission (SECP) has begun the final round of public consultations on draught amendments to the Real Estate Investment Trust (REIT) Regulations 2015.
The amendments aim to provide a small boost to the real estate sector in Pakistan by using the REIT model. The above-mentioned regulatory changes aim to remove the main roadblocks identified by real estate investors while also increasing flexibility and productivity.
Furthermore, the amendments would provide viable capital market-oriented investment and financial solutions to meet the demand for infrastructure in the country, in addition to revising the traditional REIT model (rental, hybrid, and developmental). Besides, a new model will be implemented that will enable REITs to be launched for public-private partnership (PPP) focused infrastructure development projects.
The SECP website has posted the draft amendments notice on the official website, accepting public feedback for fourteen days. The reforms are expected to stimulate the growth of the REIT sector once they receive assent. The SECP also stated that it intends to hold a virtual session to provide clarifications and additional information on the proposals.