What is the FBR Valuation Rate Pakistan?
The FBR valuation rate Pakistan (also called the FBR property valuation rate or Fair Market Value rate) is the official per-square-yard or per-square-foot value that the Federal Board of Revenue assigns to properties in specific cities and localities across Pakistan.
Table of Contents
- What is FBR Valuation Rate Pakistan Used For?
- FBR Rate vs DC Rate vs Market Rate: The Key Difference
- How FBR Valuation Rates Came to Exist
- Latest FBR Property Valuation Rates 2025–26 City-Wise List
- What Changed in 2025–26? Key Updates
- FBR Rates by Property Type
- Impact on Buyers Taxes You Now Pay (Finance Act 2025 Rates)
- Impact on Sellers CGT and Advance Tax (Updated Rates)
- Worked Example: Full Buyer + Seller Tax Calculation
- What If Your Area Is Not Listed?
- Overseas Pakistanis Special Exemptions
- FAQs
What is the FBR Valuation Rate Pakistan Used For?
FBR valuation rate Pakistan are the base for calculating:
- Advance tax on purchase Section 236-K (collected from buyers)
- Advance tax on sale Section 236-C (collected from sellers)
- Capital Gains Tax (CGT) Section 37 (tax on profit from the sale)
- Withholding tax on property transactions
- Unexplained investment tax Section 111
The golden rule: Your declared transaction value cannot be lower than the FBR valuation rate Pakistan. Even if you buy or sell for less, you pay taxes as if the transaction happened at the FBR rate.
FBR Rate vs DC Rate vs Market Rate: The Key Difference This is where most buyers and sellers get confused. There are actually three separate values attached to every property in Pakistan:
| Value Type | Set By | Used For |
| DC Rate (District Collector Rate) | Provincial Government / Board of Revenue | Stamp duty, CVT, registration fee |
| FBR Valuation Rate Pakistan | Federal Board of Revenue | Advance tax, CGT, withholding tax |
| Market Rate | Buyers & sellers in the open market | Actual negotiated transaction price |
Real-World Example (DHA Phase VIII, Karachi 500 Sq. Yards Residential Plot)
| Value Type | Per Sq. Yard | Total Value |
| DC Rate (Sindh) | ~Rs. 2,388 | ~Rs. 11,94,000 |
| FBR Valuation Rate Pakistan | Rs. 20,000 | Rs. 1,00,00,000 |
| Actual Market Price | ~Rs. 90,000+ | Rs. 4,50,00,000+ |
This gap is the core problem FBR has been trying to fix for years. DC rates were set so low that real estate became the favourite place to park undeclared money. FBR Valuation Rate Pakistan was introduced to bridge this gap, not perfectly, but significantly.
Important for property valuation in Pakistan: FBR rates and DC rates serve completely different purposes and are set by different governments (Federal vs Provincial). Never mix the two when calculating your transaction costs.
How FBR Valuation Rate Pakistan Came to Exist?
Before 2016, the DC Rate Era
For decades, all property taxes, including income tax, were anchored to District Collector (DC) rates. These were set by provincial Boards of Revenue and were often not revised for 5–6 years at a stretch. The result was that DC rates were 3 to 8 times lower than actual market prices.
Real estate became a black hole for untaxed money. The government had no effective way to tax property gains because officially declared values were a fraction of real prices.
Rule 228 and the First Reforms (2002–2016)
The Income Tax Rules 2002 introduced Rule 228, which formalised DC rates as the basis for property valuation in tax matters. A 2009 amendment improved this slightly by requiring that for built-up properties, the higher of Fair Market Value (FMV under Section 68) or DC rates should apply. But since tax officers had broad discretion in determining FMV, this created its own problems.
2016 The Turning Point – FBR Valuation Rate Pakistan
The Finance Act 2016 and Income Tax (Amendment) Ordinance 2016 overhauled Section 68. The FBR was empowered to directly notify Fair Market Values through official gazette notifications, with those rates becoming the binding minimum for property transactions.
Since then, FBR has issued multiple SRO rounds covering 56+ cities with the latest revision wave running from October 2024 through April–May 2026.
Latest FBR Valuation Rate Pakistan 2025–26 City-Wise List
FBR property valuation rate Pakistan have seen a major revision cycle in 2025–26. Key SRO notifications currently in effect include:
- SRO 2392(I)/2025 December 2025 (Islamabad, later revised)
- SRO 644(I)/2026 April 16, 2026 (Islamabad revised downward by 10–35%)
- SRO 650(I)/2026 Multan (amending SRO 1729 of 2024)
- SRO 651(I)/2026 Faisalabad (amending SRO 1688 of 2024)
- SRO 652(I)/2026 Bahawalpur (DHA & Askari schemes)
- SRO 653(I)/2026 Gujranwala (DHA, Askari, Palm City)
- May 2026 SRO DHA Lahore (officially implemented May 19, 2026)
How to download: Visit fbr.gov.pk → Property Valuation for all city-specific SRO files in PDF format.
Cities Currently Covered by FBR Valuation Rate Pakistan Notifications
| # | City | # | City | # | City |
| 1 | Islamabad | 2 | Lahore | 3 | Karachi |
| 4 | Rawalpindi | 5 | Faisalabad | 6 | Multan |
| 7 | Peshawar | 8 | Quetta | 9 | Hyderabad |
| 10 | Sialkot | 11 | Gujranwala | 12 | Gujrat |
| 13 | Murree | 14 | Abbottabad | 15 | Gwadar |
| 16 | Bahria Town | 17 | DHA City Karachi | 18 | Bahawalpur |
| 19 | Jhelum | 20 | Sargodha | 21 | Rahim Yar Khan |
Plus 35+ additional cities. Total coverage: 56 city/locality links currently listed on FBR’s valuation page.
What Changed in 2025–26? Key Updates
1. Islamabad Rates A Roller Coaster
Islamabad’s valuation story in 2025–26 has been dramatic:
- December 2025: FBR tried to hike rates by up to 1,700% in some sectors via SRO 2392(I)/2025
- December 16, 2025: FBR suspended the SRO after massive protests from real estate associations
- February 2026: Revised SRO 163(I)/2026 issued with reduced rates (still up 15–75% from before)
- April 2026: FBR cut rates again by 10–35% via SRO 644(I)/2026
Current Islamabad superstructure rates (SRO 644/2026):
- Buildings up to 5 years old: Rs. 2,500 per sq. ft
- Buildings older than 5 years: Rs. 1,200 per sq. ft
In sectors like B-17 and C-14, possession-held residential plots: Rs. 21,000 per sq. yard
2. DHA Lahore May 2026 Revision
DHA Lahore rates were revised downward in May 2026 through an official SRO. DHA Phase 7, Phase 8, and Phase 9 Prism saw noticeable reductions. This is expected to reduce transfer costs and encourage fresh investment activity.
3. Finance Act 2025: Completely New Advance Tax Rates
The Finance Act 2025 replaced the old simple 1%/2%/4% structure with a tiered, value-based system. See the tables in the buyer and seller sections below.
4. CGT The Holding Period Rule Has Changed
This is the biggest change most guides miss. The Finance Act 2024 already introduced a flat CGT rate for properties bought on or after July 1, 2024. The holding period table (10%, 7.5%, 5%, 0%) only applies to properties bought before July 1, 2024. For newer purchases, a flat rate applies. Full details in the seller section below.
FBR Valuation Rate Pakistan by Property Type
FBR valuation rates Pakistan vary by property category and urban zone (typically classified as A-I, I, II, III, etc., with A-I being the highest-value areas).
| Property Type | Valuation Basis |
| Open Plot – Residential | Per square yard |
| Open Plot – Commercial | Per square yard (significantly higher than residential) |
| Open Plot – Industrial | Per square yard |
| Built-up Residential Property | Per square yard |
| Built-up Commercial Property | Per square yard |
| Residential Superstructure (constructed building) | Per square foot of covered area (age-based) |
| Flats / Apartments | Per square foot of covered area |
For Islamabad specifically, the superstructure value is now set at:
- Up to 5 years old: Rs. 2,500/sq. ft
- Older than 5 years: Rs. 1,200/sq. ft
For areas with conflicting rates (e.g. overlap between two notifications), the higher value always applies.
Impact on Buyers Taxes You Now Pay (Finance Act 2025 Rates)
Provincial Taxes (Based on DC Rates)
These have not changed structurally, though DC rates themselves are periodically revised:
- Capital Value Tax (CVT): 2%–3% of DC rates (provincial)
- Stamp Duty: 2% of DC rates (provincial)
- Registration Fee: 1% of DC rate or declared value, whichever is higher (provincial)
Federal Advance Tax Section 236-K (Finance Act 2025 Rates)
This is where the biggest change happened. The old flat 2%/4% structure is gone. Rates are now tiered by property value and have three categories instead of two: Filer, Late Filer, and Non-Filer.
| Fair Market Value of Property | Filer | Late Filer | Non-Filer |
| Up to Rs. 50 million | 1.5% | 4.5% | 10.5% |
| Rs. 50 million to Rs. 100 million | 2% | 5.5% | 14.5% |
| Above Rs. 100 million | 2.5% | 6.5% | 18.5% |
Key point for 2026: Non-filers can now pay up to 18.5% advance tax on high-value property purchases. That’s nearly 12x more than a filer buying the same property. Being on the Active Taxpayers List (ATL) has never mattered more.
Exemptions still apply:
- Overseas Pakistanis with POC/NICOP using approved banking remittances (see Overseas section)
Impact on Sellers CGT and Advance Tax (Updated 2025–26 Rates)
Advance Tax on Sale Section 236-C (Finance Act 2025 Rates)
Old rate: 1% filer / 2% non-filer. That’s gone. The new structure is:
| Gross Sale Consideration | Filer | Late Filer | Non-Filer |
| Up to Rs. 50 million | 4.5% | 7.5% | 11.5% |
| Rs. 50 million to Rs. 100 million | 5% | 8.5% | 11.5% |
| Above Rs. 100 million | 5.5% | 9.5% | 11.5% |
Source: FBR.gov.pk official FAQ Finance Act 2025 amendments
Exemptions:
- Dependents of Shaheed Armed Forces personnel
- First sale by original allottee (certified by official allotment authority)
Capital Gains Tax (CGT) The Two-Regime System
Pakistan now has two different CGT regimes for immovable property, depending on when the property was acquired.
Regime 1: Properties Acquired On or Before June 30, 2024
For properties acquired on or before June 30, 2024, CGT still depends on the holding period, but the rates are not the same for every property type. Open plots, constructed properties, and flats have separate rate schedules.
| Holding Period | Open Plots | Constructed Property | Flats |
| Up to 1 year | 15% | 15% | 15% |
| More than 1 year and up to 2 years | 12.5% | 10% | 7.5% |
| More than 2 years and up to 3 years | 10% | 7.5% | 0% |
| More than 3 years and up to 4 years | 7.5% | 5% | 0% |
| More than 4 years and up to 5 years | 5% | 0% | 0% |
| More than 5 years and up to 6 years | 2.5% | 0% | 0% |
| More than 6 years | 0% | 0% | 0% |
Regime 2: Properties Acquired On or After July 1, 2024
For properties acquired on or after July 1, 2024, the holding-period benefit no longer applies in the same way.
If the seller is on the Active Taxpayers List (ATL) on the date of disposal, CGT is charged at a flat 15% of the capital gain, regardless of whether the property is sold after one year, three years, or a longer period.
If the seller is not on the ATL, the gain is taxed at the applicable rates specified for individuals/AOPs or companies, as the case may be. For individuals and AOPs not appearing on the ATL, the tax rate cannot be less than 15% of the gain.
Plain English: If you bought a property on or after July 1, 2024, you should not assume that holding it for 3+ years will make the gain tax-free. For ATL filers, the current rule is a flat 15% CGT on the gain.
Worked Example: Full Buyer + Seller Tax Calculation
Scenario:
- Property: Residential plot in DHA Lahore
- Purchase date: September 2024 (post July 1, 2024, new CGT regime applies)
- Purchase value (FBR rate at time of purchase): Rs. 60 million
- Sale value (FBR rate at time of sale): Rs. 80 million
- Holding period: ~1.5 years (sold in early 2026)
- Both buyer and seller: Active ATL Filers
SELLER’S CALCULATION:
Capital Gain = Rs. 80M – Rs. 60M = Rs. 20 million
CGT (flat 15% new regime, post July 2024 purchase): Rs. 20M × 15% = Rs. 3,000,000
Advance Tax Section 236-C (5% filer Rs. 50M–100M slab): Rs. 80M × 5% = Rs. 4,000,000
Total Seller Tax = Rs. 7,000,000
(Note: 236-C advance tax is adjustable against final tax liability it is not an additional tax on top of CGT in the final assessment)
BUYER’S CALCULATION:
Advance Tax Section 236-K (2% filer Rs. 50M–100M slab): Rs. 80M × 2% = Rs. 1,600,000
Plus provincial taxes on DC rates (stamp duty 2% + registration 1% + CVT ~2.5%): Estimated on DC rate of approx. Rs. 5–8 million = ~Rs. 275,000–440,000
Approximate Total Buyer Tax = ~Rs. 1,875,000 – Rs. 2,040,000
Key takeaway: On an Rs. 80 million property, a filer seller pays approximately Rs. 7 million in total tax. A non-filer seller on the same transaction would pay Rs. 9.2 million (11.5% × Rs. 80M) in 236-C alone, before CGT. Filing your taxes is not optional anymore; the financial penalty for not doing so is enormous.
FBR Valuation Rate Pakistan – What If Your Area Is Not Listed?
Not every locality in Pakistan has an FBR valuation rate Pakistan notification. If your area is not covered:
- Rule 228 of the Income Tax Rules 2002 provides the legal fallback
- For open plots: the value determined by the development authority (LDA, KDA, CDA, RDA, etc.) based on auction prices for similar plots applies
- If no development authority valuation exists: the DC rate (set by District Officer Revenue for stamp duty purposes) is used
- For agricultural land: the average recorded sale price from revenue records of the estate applies
- For built-up properties: FMV under Section 68 or DC rate, whichever is higher
In short: DC rates serve as the last resort fallback when FBR has not yet notified rates for your specific area. This is still the situation for many smaller cities and rural localities.
FBR Valuation Rate Pakistan – Overseas Pakistanis Special Exemptions
The Finance Act 2025 explicitly updated FBR’s position on overseas Pakistanis. Key points:
Advance Tax (236-C and 236-K) Filer Rate for Non-Resident Pakistanis
Overseas Pakistanis who qualify get the filer rate even if they have never filed a tax return in Pakistan. To qualify, you must:
- Hold a valid POC (Pakistan Origin Card) or NICOP (National Identity Card for Overseas Pakistanis)
- Be non-resident in Pakistan (stay of less than 183 days in a financial year)
How to claim it: The registrar/housing society clicks the “Overseas Pakistanis” link on FBR’s web portal, creates a PSID, uploads your POC/NICOP, and the system processes payment at filer rates after Commissioner verification.
Overseas Pakistanis CGT Treatment on Property Sold in Pakistan
Overseas Pakistanis should not treat this as a blanket “0% CGT exemption.” The law provides a specific treatment only where the conditions are met.
If the seller or transferor is a non-resident individual holding a POC, NICOP, or CNIC, and the immovable property was acquired through a Foreign Currency Value Account (FCVA) or a Non-Resident Pakistani Rupee Value Account (NRVA) maintained with an authorized bank in Pakistan under State Bank foreign exchange regulations, then the tax collected under Section 236C is treated as final discharge of tax liability in lieu of capital gains taxable under Section 37.
In simple terms, eligible overseas Pakistanis may have their Section 236C tax treated as the final settlement of CGT on that property sale. This is not the same as saying “0% CGT applies automatically.”
This treatment is separate from the filer-rate benefit for overseas Pakistanis. Non-resident Pakistanis holding POC or NICOP may qualify for filer rates under Sections 236C and 236K even if they have not filed a Pakistani tax return, subject to FBR’s verification process.
Government Schemes Section 236-K Exemption
Advance tax under Section 236-K does not apply to government-approved schemes specifically for expatriate Pakistanis, provided payment is made in foreign exchange remitted through normal banking channels from outside Pakistan.
FAQs – FBR Valuation Rate Pakistan
What is the FBR valuation rate Pakistan?
The FBR valuation rate Pakistan is the official per-square-yard value set by the Federal Board of Revenue for properties in specific areas. It is the legally binding minimum base for calculating advance tax, CGT, and withholding tax on property transactions. It is set under Section 68 of the Income Tax Ordinance 2001 and published via official SRO notifications.
What is the difference between FBR rate and DC rate in Pakistan?
The FBR valuation rate Pakistan is set by the federal government and used for income tax purposes (advance tax, CGT, withholding tax). The DC rate is set by the provincial government (District Collector / Board of Revenue) and used for provincial taxes like stamp duty, CVT, and registration fees. FBR rates are generally significantly higher than DC rates. You pay both sets of taxes in any property transaction, but they are calculated on different bases.
What are the current advance tax rates for property in Pakistan (2025–26)?
Under Finance Act 2025, buyer advance tax (236-K) ranges from 1.5% to 2.5% for filers, 4.5% to 6.5% for late filers, and 10.5% to 18.5% for non-filers, depending on the property’s FBR value. Seller advance tax (236-C) ranges from 4.5% to 5.5% for filers and 11.5% for non-filers, regardless of property value tier for non-filers.
What is the CGT rate on property in Pakistan in 2025–26?
It depends on when you bought the property. Bought before July 1, 2024: old holding-period system applies (10%/7.5%/5%/0% for 1/2/3/3+ years). Bought on or after July 1, 2024: flat 15% CGT for ATL filers, regardless of holding period. Non-filers face higher progressive rates.
Does the 3-year zero CGT rule still apply in Pakistan?
Only for properties purchased before July 1, 2024. If you bought after that date, there is no zero-CGT benefit for holding 3+ years. A flat 15% CGT applies for ATL filers regardless of holding period under the new regime introduced by the Finance Act 2024.
Where can I check my property’s FBR valuation rate Pakistan?
Visit fbr.gov.pk and go to the Property Valuation section. Each city’s rates are available as downloadable PDFs (SRO notification files). Alternatively, check with a registered property consultant or your housing society’s transfer office, as they handle these filings daily.
What happens if FBR value is higher than the actual market price?
You still pay taxes on the FBR notified rate. Section 68(6) of the Income Tax Ordinance is explicit: the consideration for tax calculation “shall not be less than the fair market value as determined” by FBR. This is exactly why FBR’s Islamabad rate hike in December 2025 (by up to 1,700%) caused such a massive backlash in many sectors; the notified FBR value exceeded the actual market price.
Are overseas Pakistanis exempt from FBR advance tax on property?
Overseas Pakistanis holding POC or NICOP and qualifying as non-residents can pay advance tax at the filer rate even without having filed a Pakistani tax return. They are also exempt from Section 236-K advance tax on government-approved schemes, provided remittance comes through banking channels.
For more information on types of property taxes and real estate investment options, please visit Chakor.
Sources:
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