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Stay informed with the latest developments in real estate, business, and investment trends across Pakistan and beyond. Chakor News delivers timely updates, expert insights, and market analysis to help you make informed decisions. Whether it’s project launches, economic shifts, or updates on regulatory changes, our news coverage keeps you ahead of the curve. Explore reliable stories, impactful headlines, and trusted reporting—only on Chakor News.

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IRIS Outages Stall TY2026 Filings; LTBA Seeks Deadline Extension

ISLAMABAD: The Lahore Tax Bar Association (LTBA PILC) has reported that the Federal Board of Revenue’s (FBR) electronic filing system failed to support taxpayers attempting to submit their annual income tax returns and wealth statements for Tax Year 2026 on Tuesday, 15 September.

LTBA PILC Chairman Waheed Butt said taxpayers, tax practitioners and lawyers across the country encountered repeated technical faults, slow response times and service interruptions on the IRIS portal, leaving many unable to complete submissions within the prescribed window.

Butt maintained that the FBR’s IT wing needs to treat the matter as a priority and review how IRIS responds to consultants and legal representatives, so the return filing exercise is not pushed back further.

He argued that recurring system breakdowns place an avoidable burden on compliant filers and expose them to penalties for delays that originate within the tax authority’s own infrastructure rather than any lapse on the taxpayer’s part.

The LTBA chairman urged the department to identify what is driving the portal’s poor performance, expand server capacity, strengthen response infrastructure, and prepare the system for the sharp rise in traffic that ordinarily builds as the deadline approaches.

He added that the bar and its members are willing to assist FBR officials in mapping the specific technical bottlenecks reported by the filing community, while cautioning that a prompt remedy is essential if taxpayers are to be protected from unwarranted penalties, additional surcharges or the forfeiture of statutory rights arising from system-side failures.

Butt further asked the FBR to consider extending the filing deadline for Tax Year 2026 so that no genuine taxpayer is penalised for circumstances beyond their control.

CategoriesNews Economy Investment Property Laws Property Taxes Real Estate Investment

Faulty Formula in FBR’s New Tax Return Form Is Overcharging Taxpayers, Warns PTBA

ISLAMABAD: The Pakistan Tax Bar Association has urged FBR to urgently fix a calculation error in its new income tax return form, warning that it is charging some taxpayers more than the law actually requires.

In a letter to FBR Chairman Rashid Mehmood Langrial, the PTBA said the fault lies in how the IRIS system handles “minimum tax,” a baseline amount already deducted or withheld on certain kinds of income that the law says should count in full toward a taxpayer’s minimum tax obligation.

Instead, PTBA says, IRIS splits a person’s income across different sources and taxes the remainder at an average rate, effectively piling an extra, unjustified demand on top of tax already paid.

To illustrate the unfairness, the bar association pointed out that two taxpayers earning the exact same income could end up owing different amounts, with the one who had tax withheld in advance actually paying more overall than someone who didn’t, purely because of how the system calculates things.

PTBA noted that the law already deals with a similar scenario correctly under the Final Tax Regime, where income taxed at source is treated as a separate block and excluded from normal-rate calculations. It says IRIS fails to make the same exclusion for minimum tax cases, meaning the same income essentially gets taxed twice.

The association has shared sample calculations with FBR to back up its claim and argued that building such formulas into the software amounts to interpreting the law itself, something it says neither FBR nor its technology arm, PRAL, has the authority to do, particularly since taxpayers have no option but to accept whatever the system generates.

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CategoriesNews Property Property Laws Property Taxes Real Estate Investment

Property Tax Windfall Signals Capital Flight Reversal, But Experts Warn of Real Estate Bubble Risk

Withholding tax collected from immovable property transactions climbed 57 percent in FY26, even as the government slashed advance tax on property purchases by half in the FY27 budget to encourage investment. The concession followed a marked surge in real estate prices, with plots in parts of Karachi reportedly multiplying in value within six months.

Analysts link the trend to reversed capital flight from the Gulf, particularly the UAE, as regional instability tied to the US-Iran conflict prompted funds once parked abroad to return.

Stronger remittance inflows and higher dollar liquidity from exchange companies have reinforced this shift, bolstering forex reserves and domestic liquidity.

However, concerns are mounting that this capital is settling into largely unproductive assets- vacant plots rather than industry or the stock market- which remains less attractive given its risk profile and a plateauing outlook.

Pakistan’s investment-to-GDP ratio continues to languish near record lows, with high taxation, weak industrial competitiveness, and regulatory hurdles cited as key deterrents to formal-sector investment. Some inflows reportedly still move through informal hundi-hawala channels, avoiding documentation altogether.

Officials are said to be exploring an investment vehicle for overseas Pakistanis to help finance $6.5 billion in public-private partnership projects, though critics argue such measures should have been introduced earlier.

A historical precedent is being cited: after Pakistan’s 1998 nuclear tests triggered a freeze on foreign currency accounts, banks led by HBL used incentive schemes to keep the resulting rupee liquidity within the formal banking system.

With regional tensions unresolved and capital inflows expected to persist, policymakers, the central bank, and commercial banks face renewed pressure to channel this liquidity into productive sectors or government securities before speculative pressures in real estate deepen further.

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CategoriesNews Economy Investment Tax

Senate Panel Questions FBR’s Refund Retention Policy as Rs390bn Limit Emerges

ISLAMABAD: The Senate Standing Committee on Finance and Revenue questioned delays in tax refund payments after the Federal Board of Revenue (FBR) briefed lawmakers on its refund retention limit under the International Monetary Fund (IMF) programme.

The committee learned that the FBR could retain up to Rs390 billion in tax refunds at a time. Senators raised concerns about the financial impact of delayed payments on businesses and taxpayers.

During the meeting, a company representative told the committee that the business had been waiting six years for tax refunds exceeding Rs270 million.

The committee expressed concern over the prolonged delay and directed the FBR to resolve the matter within one month. Officials were also instructed to release legitimate refunds and submit a progress report within 30 days.

FBR officials reported that approximately Rs197 billion in tax refunds had been issued during the first two months of the current fiscal year, compared with Rs157 billion during the same period last year.

The authority also said it paid around Rs500 billion in refunds during the previous fiscal year.

Officials informed lawmakers that a first-in, first-out system was being used to process refund claims, aiming to improve transparency and reduce discretion.

Senators called for greater oversight of the refund process and requested details of tax refunds issued over the past five years.

The committee also reviewed other financial matters, including honoraria for medical staff deployed during the budget session and the implementation of a State Bank of Pakistan foreign exchange circular.

Further discussion on the foreign exchange issue was deferred due to legal and contractual complications.

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CategoriesNews Developments Economy Property Taxes Real Estate Real Estate Investment

SECP Proposes REIT Overhaul: Threshold Cut to 65%, Vacant Land Investment Allowed

ISLAMABAD: The SECP has presented a draft package of amendments to the REIT Regulations, 2022, designed to release fresh capital and extend participation in the country’s real estate investment trust sector.

As per the proposed changes, the minimum threshold for real estate income and assets for REIT portfolios would drop from 75 to 65 percent, giving REIT Management Companies (RMCs) greater latitude to structure holdings and qualify a broader range of projects. Investment-based REITs would also gain the right to invest in vacant land and plots, subject to conditions still to be finalised.

The reforms would extend REIT access to new categories of capital, permitting group-level trusts and employee funds to invest in unlisted REIT schemes. Separately, the borrowing window available to RMCs from sponsors, directors and associated entities would be lengthened from 24 to 36 months, though existing unitholder-approval safeguards would remain unchanged.

To ease execution timelines, RMCs facing delays beyond their control could receive up to a one-year extension to list Rental and Investment-based REITs. The draft also opens a path for RMCs to acquire property directly from government entities through binding agreements, under conditions set by the regulator. A further clarification addresses Hybrid REIT Schemes, confirming that vehicles combining investment-based and rental components may earn and realize rental income during their holding period.

SECP Chairman Dr Kabir Ahmed Sidhu said the measures are intended to build a more enabling framework for the sector, capable of drawing in long-term capital and expanding the investor base.

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CategoriesNews Developments Property Property Laws Real Estate Real Estate Investment Urban Developments & Planning

733 Karachi Development Projects Worth Rs59bn Go Online in Transparency Push

KARACHI: The Karachi Metropolitan Corporation (KMC) has begun publishing details of 733 development projects worth a combined Rs59 billion on its website, part of a broader digital transparency drive announced this week.

Mayor Barrister Murtaza Wahab said new sections added to the KMC website cover municipal assets and properties, ongoing development schemes, a Karachi Development Map, and a Land Record Management System. The project database includes costs, approved allocations and expenditure, along with details of contractors, funding sources and the institutions responsible for each scheme.

Through the interactive map, residents can track the location, jurisdiction, cost, progress and expected completion date of ongoing road works, including a Rs173 million scheme in District East, the Rs155 million Patel Hospital Road project, and the Rs472 million Mirza Adam Khan Road project. Photos and videos of construction progress will also be uploaded for public monitoring.

KMC is separately digitising land records dating back decades, with future property transfers to be recorded electronically. Employee records have been shifted to the SAP system to curb duplicate or fraudulent payments, and the civic body is moving toward an account-to-account digital payment system capable of tracking every transaction.

Wahab said the shift to digital collection has already lifted revenue, with one department’s monthly collections rising from around Rs170-180 million to roughly Rs300 million last month. Revenue and receivables are expected to be linked to the digital system in the coming months.

The mayor also cited progress on the Hub Canal, cleaning of the Hub Reservoir, and the 38-kilometre Shahrah-e-Bhutto Expressway, alongside a proposed Chakor Nala Expressway meant to ease congestion around Gulistan-e-Johar and Rashid Minhas Road.

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CategoriesNews Economy Property Taxes Real Estate

Islamabad Weighs New Local Tax Ahead of $1.2bn IMF Review

ISLAMABAD: The federal government has begun weighing proposals for a new local tax in Islamabad, contingent on the capital being granted autonomous unit status, as Pakistan and the International Monetary Fund (IMF) prepare to open talks this month on the fifth review of the ongoing loan programme.

According to sources, the proposed tax streams would fund basic facilities and administrative infrastructure in the capital, including hospitals, schools, colleges and welfare initiatives. The proposals are set to be discussed with the IMF delegation during the upcoming review, with approved measures to be incorporated into the FY28 budget. A final revenue target has yet to be determined.

The process begins with the Federal Board of Revenue (FBR) drafting the proposals, which then move to a dedicated tax subcommittee formed to examine mechanisms for an autonomous Islamabad. Following subcommittee approval, the proposals will go to a committee chaired by the Minister for Planning, before reaching Prime Minister Shehbaz Sharif for a final decision, subject to IMF approval.

The Ministry of Finance has directed all relevant ministries to compile data ahead of the review, with briefings expected to cover structural benchmarks and reform targets, including energy sector measures focused on circular debt in the electricity and gas segments.

The government is banking on a successful review to unlock the fifth tranche of the loan programme. Pakistan is expected to receive $1 billion under the tranche, plus a further $200 million earmarked for climate-related losses, bringing the potential total to $1.2 billion.

The broader push reflects a wider roadmap for Islamabad’s administrative autonomy, combining a new local tax and resource-distribution framework with IMF-guided reforms to strengthen the capital’s fiscal system.

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CategoriesNews Construction Property Laws Real Estate

LDA Digitises Crackdown on Illegal Construction, Commercial Use Violations

LAHORE: The LDA has introduced a digital monitoring system to enforce against illegal construction, unauthorised commercial use of properties, land-use violations, and non-payment of dues.

Under revised standard operating procedures, the authority will process notices, sealing, and demolition proceedings through a digital file-management system. Enforcement notices will carry QR codes, while geo-tagged photographs and supporting records will be uploaded for online monitoring.

Properties facing action will be classified into three categories: illegal construction, unauthorised change in building use and non-payment of dues.

A committee headed by the chief town planner will review cases involving alleged illegal commercialisation. The committee will examine building plans, commercialisation status, legal records, court orders, previous approvals, outstanding dues and other relevant information before deciding on enforcement measures.

The committee will record decisions and supporting documents digitally, and track subsequent changes through an electronic audit trail.

Under the revised procedures, property owners will be given 15 days to address unauthorised commercial use and five days to respond in cases involving illegal construction before enforcement action is initiated.

The authority has also digitised de-sealing proceedings. Sealed properties may be reopened following payment of applicable fines, restoration to lawful status or approval from the competent authority.

LDA has warned that officials failing to comply with the new procedures may face departmental action.

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CategoriesNews Economy Property Taxes

FBR’s withholding tax on property sales climbs 56.9pc in FY26

ISLAMABAD: The Federal Board of Revenue (FBR) recorded a 56.9 percent increase in withholding tax (WHT) collected on the sale of immovable property during FY26, with receipts rising by Rs66.7 billion compared to the previous fiscal year, according to official data.

The property-sector levy, collected under Section 236C of the Income Tax Ordinance 2001, was one of five major withholding tax categories driving overall WHT growth during the year, alongside contracts, imports, dividends and salaries.

WHT collected on contracts under Section 153 rose 22.3 percent, adding Rs162.3 billion in FY26 the largest absolute increase among the categories. Import-related WHT under Section 150 grew 16.5 percent, generating an additional Rs69.5 billion.

Dividend-income WHT under Section 149 increased 18.5 percent, contributing Rs30 billion in incremental revenue, while WHT deducted from salaries rose 3.8 percent, adding Rs23 billion to collections.

In percentage terms, the property sector recorded the sharpest growth among the five heads, though contracts remained the largest contributor to incremental WHT revenue in absolute rupee terms.

The figures suggest withholding mechanisms continue to anchor FBR’s direct tax collection, with real estate transactions emerging as an increasingly significant revenue source alongside trade- and salary-linked deductions.

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CategoriesNews Construction Developments Urban Developments & Planning

CDA’s Zone III Commercial Plan Draws Criticism Over Policy Contradiction

ISLAMABAD: The Capital Development Authority (CDA) is moving forward with plans to establish a major commercial zone within Islamabad’s Zone III, an area officially protected from construction under existing regulations, prompting accusations of policy inconsistency from insiders familiar with the matter.

The commercial development is linked to Margalla Enclave, a joint venture between the CDA and the Defence Housing Authority (DHA) in the Kuri area. A 3.8-kilometre link road connecting Park Road to the housing scheme runs through Zone III, and earthwork on the route is nearly complete.

The federal government has since granted this road the status of an arterial/major road, directing the CDA to apply regulations used for other major thoroughfares such as GT Road, Murree Road, and the Islamabad Expressway, effectively paving the way for regulated commercial development along its length.

The move stands in sharp contrast to CDA’s long-standing enforcement in Zone III, where residents are barred from constructing even modest homes on their own land, denied electricity connections, and have had unauthorised structures demolished, with incidents reported in the Shah Allah Ditta area.

A CDA spokesperson declined to answer directly whether the road falls within Zone III or whether the plan constitutes contradictory policy, instead referring to an official notification dated May 7, 2026, authorising the development.

The CDA board reportedly reviewed the notification’s implementation parameters at a recent meeting.

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