Unrealistic property valuations based on outdated DC rates place an unfair burden on middle- and lower-income homeowners across Punjab.

LAHORE, The recent move by the Punjab government to impose property tax based on Deputy Commissioner (DC) rates has triggered widespread concern among citizens and real estate stakeholders. Experts warn that the decision to use artificially inflated DC rates—often disconnected from actual market values, will impose an unjust financial burden on property owners, especially those in the middle and lower-income brackets already grappling with inflation and stagnant wages.

The arbitrary nature of DC rate assessments fails to account for regional economic disparities, resulting in taxation that is not only unfair but also economically damaging. Urban hubs like Lahore, Multan, and Rawalpindi, along with smaller cities such as Dera Ghazi Khan, could experience a dip in housing affordability, real estate investment, and overall market stability.

Industry analysts and citizen groups are urging the provincial government to revisit this approach. They recommend establishing a more transparent, realistic property valuation model that reflects current market dynamics and is developed through consultations with real estate experts and taxpayer representatives.

Unless revised, this tax policy risks further alienating investors and homeowners, ultimately harming Punjab’s real estate and economic growth. Fair taxation must be grounded in actual data, not arbitrary estimates.

After Lyari Collapse Claims 27 Lives, ABAD Offers to Reconstruct Hundreds of Unsafe Buildings Across Karachi

Karachi, In a bold initiative to address Karachi’s growing urban safety crisis, the Association of Builders and Developers (ABAD) has offered to rebuild hundreds of structurally unsafe buildings across the city within 700 days, pending formal government approval.

Speaking at a press conference at ABAD House, Chairman Mohammad Hassan Bakhshi emphasized the urgent need for action following the tragic Lyari building collapse, which has reignited concerns over aging and unauthorized constructions. Joined by senior officials, Bakhshi revealed that around 700 buildings have been deemed hazardous and need immediate intervention.

ABAD proposed collaborating with technical bodies like NESPAK or NDMA to conduct a city-wide structural survey, with a focus on high-risk areas such as Lyari, Liaquatabad, and Delhi Colony.

The association has also offered to develop up to 100,000 affordable housing units in Karachi, modeled after Punjab’s recent housing scheme, if provided with institutional support.

Calling for transparency and regulatory reform, ABAD urged the inclusion of private sector voices in official inquiries and emphasized the need for accountability from both builders and regulators.

This landmark proposal places ABAD at the forefront of Karachi’s urban renewal efforts, signaling a rare and urgent opportunity for coordinated public-private action.

On-site offices and a crackdown on encroachments aim to expedite infrastructure delivery and enhance public trust in the development process.

The Chairman of the Capital Development Authority (CDA) and Chief Commissioner of Islamabad, Muhammad Ali Randhawa, has issued firm directives to accelerate infrastructure development across Islamabad’s residential sectors. In a high-level meeting at CDA headquarters on July 9, 2025, he emphasized the need to proceed with on-the-ground work promptly while maintaining high standards of quality and transparency. (zameen.com).

To enhance responsiveness, Randhawa announced that on-site offices will be established for the Deputy Commissioner, CDA, and other key officials in sectors currently under development. These local hubs will serve as direct points of contact for residents to address land grievances, submit documentation, and access vital information (zameen.com).

A significant focus of the meeting was addressing illegal encroachments in sectors H-16, C-15, C-16, E-12, and F-13. The CDA chief ordered a decisive crackdown on unauthorized constructions, urging residents with legitimate claims to register their properties promptly at these on-site offices (zameen.com).

Senior officials, including representatives from the Administration, Estate, Engineering, Finance, and Environment wings, DG Works, and Deputy Commissioners of Islamabad and CDA, attended the session. Chairman Randhawa reiterated that all bureaucratic and logistical hurdles delaying progress must be removed without delay (zameen.com).

With this directive-driven approach, CDA aims to transform Islamabad’s development model, making it faster, more transparent, and truly citizen-focused.

The revised fee structure raises concerns among buyers, investors, and realtors as the 3% rate sparks calls for protest and policy review.

Islamabad’s Capital Development Authority (CDA) has implemented a significant hike in property transfer fees, raising the charge from 1% to 3% of the property’s FBR-assessed value, effective July 1, 2025 (dawn.com). This sharp increase follows closely on the heels of a federal budget move that removed a 4% stamp duty and 1% registration fee on property transactions, affecting federal and rural jurisdiction properties (dawn.com).

While the CDA maintains that its adjustment reflects current market valuations, real estate agents have raised concerns. The Islamabad Real Estate Agent Association has condemned the move, labeling it “regressive” and pledging a protest on July 22 unless the fee is reversed (dawn.com). According to CDA, the title deed charge remains at 0.5%, and transfers involving family or inheritance have a reduced rate of 0.75% (zameen.com).

This new fee regime, applied across all CDA-administered zones, including commercial and residential sectors, marks the second-largest commercial real estate transaction change in Pakistan by rupee value and the third-largest by dollar value of its kind. Analysts warn that the higher costs could slow property deals, while buyers face heavier financial burdens.

 Key Highlights

• Effective from July 1, 2025
  
• The transfer fee is now 3% vs. prior 1%
  
• Title deed fees remain 0.5%; inheritance transfers are 0.75%
  
• Real estate agents plan a protest on July 22
  

What’s Next?

Stay tuned as industry leaders and the CDA engage on revised property policies and the future of Islamabad’s real estate landscape. For the latest updates on our projects, partnerships, and real estate developments, visit Chakor Ventures today.

New measures reduce taxes for homeowners, professionals, and eco-conscious citizens, aiming for a fairer and more efficient fiscal system.

Khyber Pakhtunkhwa Governor Faisal Karim Kundi has officially signed the Finance Act 2025, which came into force on July 1, 2025, aiming to ease the tax burden on low-income individuals while expanding the province’s revenue base (tribune.com.pk).

Key highlights include:

• Property tax is waived for houses under five marlas, extending exemptions up to 4.9 marlas.
  
• Abolished professional tax for individuals earning up to Rs 36,000/month, a significant relief for middle-income earners.
  
• Stamp duty was halved from 2% to 1% on allotment and transfer of residential and commercial properties, streamlining real estate transactions.
  
• Mandatory vehicle registration before permit issuance to improve transport regulation.
  
• Extension of EV tax exemptions until June 30, 2028, to encourage the adoption of electric vehicles.
  
• The hotel bed tax was reduced from 10% to 7%, and the professional tax for doctors and tailors was also lowered.
  
• New penalties for rickshaw violations and more onerous clauses for fake or forged driving licenses.

However, five- to 15-marla homes in divisional and district headquarters are now subject to revised nominal property taxes, ranging from Rs 2,000 to Rs 3,500 annually (tribune.com.pk).

Provincial authorities stress that no new taxes have been imposed in the former FATA or PATA areas, clarifying that the law strikes a balance between taxpayer relief and revenue expansion.

As the province embarks on this new fiscal journey, the Finance Act 2025 signals an economic shift, offering targeted relief, promoting compliance, and supporting sustainable growth.

One of Pakistan’s largest commercial real estate transactions signals a strategic shift and capital strengthening, ranking as the second-largest by rupee value and the third-largest by dollar value.

Bank Makramah Limited (BML) has announced the sale of its iconic Cullinan Tower in Clifton, Karachi, for Rs 12 billion, marking a significant milestone in its financial strategy (brecorder.com). The decision follows a directive from BML’s Board of Directors as part of an aggressive recapitalization plan aimed at strengthening its balance sheet and supporting future growth initiatives.

The Rs 12 billion proceeds from the headquarters sale will add substantial liquidity and capital gains, fueling ongoing efforts to enhance BML’s net asset base by approximately Rs 50 billion in conjunction with other financial measures (brecorder.com). These measures include a fresh PKR 5 billion capital injection from sponsor Nasser Abdulla Hussain Lootah—adding to a prior Rs 10 billion infusion in 2023, as well as a pending merger with Global Haly Development Limited (brecorder.com).

Additionally, BML is close to recovering over Rs 13 billion in legacy non-performing loans, which will further support its profitability and recapitalization targets (brecorder.com).

As BML positions itself for sustainable growth and excellence, the strategic asset sale sends a strong confidence signal to shareholders and investors. The transaction underscores the bank’s commitment to financial resilience and positions it well for future growth and expansion.