ABAD Chairman Laments $15–20 Billion Flight Abroad
ISLAMABAD: The chairman of the Association of Builders and Developers of Pakistan (ABAD) has expressed deep concern over the flight of $15–20 billion in capital abroad, warning that such outflows are harming the national economy and slowing down the construction and real estate sectors.
Speaking at a business conference, the ABAD chairman highlighted that the lack of investor confidence, regulatory hurdles, and macroeconomic instability have prompted investors and businessmen to move capital out of Pakistan, affecting growth and employment in key sectors.
Capital Flight Impact on Economy
According to ABAD, the ongoing capital flight has multiple negative consequences:
- Slower real estate development due to reduced funding
- Decreased foreign exchange reserves
- Pressure on Pakistan’s currency and inflation rates
- Lower construction sector investments and employment opportunities
The chairman stressed that reversing this trend requires policy reforms, investor-friendly regulations, and economic stability.
ABAD’s Call to Action
The association urged the government to implement measures that:
- Encourage repatriation of capital held abroad
- Facilitate tax incentives for reinvested funds
- Improve ease of doing business in Pakistan
- Ensure transparency and regulatory certainty in the construction and real estate sector
He said:
“If we want the construction sector to thrive and contribute to national GDP, it is critical to address the massive capital outflows immediately.”
Construction Sector’s Role in Economic Growth
ABAD emphasized that the construction and real estate sectors are vital drivers of Pakistan’s economy, generating employment, boosting local industries, and attracting domestic and foreign investments. Capital flight threatens these gains, particularly at a time when infrastructure development projects are underway across the country.
Industry experts echoed ABAD’s concerns, noting that without urgent reforms, investor confidence may further deteriorate, compounding economic challenges.
Conclusion
The warning from ABAD’s chairman regarding $15–20 billion capital flight highlights pressing economic issues and the urgent need for policy measures to restore investor confidence. Stabilizing the real estate sector is seen as pivotal to Pakistan’s broader economic recovery.
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