Saturday August 20, 2022

Non-productive sector

June 27, 2022

This refers to the article, ‘Taxing the idle’ (June 23) by Ejaz Ahmed Mangoon. The writer wants the government not to tax empty land plots on the grounds that it will discourage overseas Pakistanis from investing in the real-estate sector. There is no data to tell the number of plots that are owned by overseas Pakistanis. Investment in real-estate is dead capital, which does not generate employment or increase productivity. It needs to be discouraged at all costs and taxed as heavily as possible.

The real-estate sector has caused a great loss to the economy as fertile agricultural land is converted into housing plots. This has resulted in reduced agricultural output, leading to a shortage of food and agriculture supplies in the country. Billions of dollars are being spent on their imports now. Also, investment in real-estate has consumed domestic savings, leaving nothing for the agriculture and industrial sectors. Overseas Pakistanis may consider investing in productive businesses to improve the country’s productivity level, which will result in increased incomes of their families and relatives.

Abdul Majeed