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CategoriesNews Real Estate

Islamabad’s Real Estate Sector Set for New RERA Reforms

ISLAMABAD: The federal government has initiated a comprehensive review of the legal and regulatory framework governing real estate in the capital, with a subcommittee formed to recommend a modernised structure for the Real Estate Regulatory Authority (RERA).

Federal Minister for Law, Justice and Human Rights Azam Nazeer Tarar chaired a high-level meeting on Monday to review the existing RERA framework and explore options for overhauling it.

The session brought together key stakeholders, including Federal Minister for Finance and Revenue Mohammad Aurangzeb, Minister of State for Interior Talal Chaudhry, Capital Development Authority (CDA) Chairman and Chief Commissioner Islamabad (retired) Lt. Sohail Ashraf, and senior officials from the interior and law ministries.

Participants held detailed discussions on establishing an effective, transparent, and citizen-focused regulatory system, addressing gaps in the current framework’s implementation and institutional responsibilities.

As a result, Minister Tarar constituted a subcommittee comprising representatives from the interior and law ministries alongside the CDA, tasked with examining legal options and institutional mechanisms for RERA. The subcommittee has been directed to submit its findings within 20 days.

Minister Tarar underscored the need to strengthen Islamabad’s regulatory and institutional architecture, positioning the capital as a model city for the country. He stressed that protecting citizens’ property rights, ensuring transparency, and safeguarding public interest must remain central to the reform process, noting that a robust legal framework would facilitate low-cost housing and improve access to housing finance.

The meeting also addressed the digitisation of land records as a critical reform component. Minister Aurangzeb highlighted that modernising land records could bolster confidence among financial institutions and the public alike. Minister Chaudhry commended existing CDA reforms while calling for continued consultation on regulatory options.

Officials agreed that the federal government, CDA, and private sector are essential stakeholders, with further consultations planned before the new legal and regulatory framework is finalised.

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CategoriesNews Property Property Taxes

New Property Tax Rules Announced by FBR for 2027

ISLAMABAD: The Federal Board of Revenue (FBR) has released updated guidance on how income from property will be taxed in Pakistan for Tax Year 2027, drawing on provisions of the Income Tax Ordinance, 2001, as amended through June 2026.

Under Section 15 of the Ordinance, rental income remains taxable under the head “Income from Property,” covering not just periodic rent but also forfeited deposits from failed property sale agreements.

However, the FBR clarified that income tied to leased plant and machinery, or payments for utilities and amenities bundled with a tenancy, will instead be classified as “Income from Other Sources.”

A notable feature of the framework is the fair market rent provision. Where actual rent falls below prevailing market rates, tax authorities may assess the property owner on the basis of fair market rent rather than the lower amount actually collected unless that market-rate value has already been taxed through the tenant’s salary.

Section 15A sets out permissible deductions, the most significant being a standard repair allowance equal to one-fifth of taxable rent. Property owners may also deduct insurance premiums, local taxes, ground rent, and profit paid on loans used to acquire or improve the property, among other itemised costs. Administrative and collection expenses are deductible but capped at 4% of chargeable rent.

The rules further address previously written-off unpaid rent that is later recovered, which becomes taxable in the year of recovery, and unpaid expense liabilities that remain outstanding three years after being claimed, which then become taxable income.

Separately, under Section 16, non-adjustable payments collected from tenants are not taxed immediately in full. Instead, they are treated as rental income spread evenly across ten tax years, with special provisions governing early refunds to outgoing tenants.

The FBR said the framework is intended to give property owners clarity on their tax obligations ahead of the new filing year.

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CategoriesNews Developments Economy Investment

Pakistan Pushes for Strategic Economic Partnership with Saudi Arabia

ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday welcomed a high-level Saudi business delegation at the Prime Minister’s House and invited investors from the Kingdom to explore opportunities across Pakistan’s priority sectors, including agriculture, infrastructure, energy, real estate, and information technology.

Prince Mansour bin Mohammed Al Saud, Chairman of the Saudi-Pak Joint Business Council, led the delegation. During the meeting, the Prime Minister conveyed his respects to Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud and Crown Prince and Prime Minister Mohammed bin Salman.

Sharif underscored the “deep-rooted and brotherly relationship” between the two nations and stressed the need to translate this longstanding partnership into a mutually beneficial strategic economic alliance, in line with the Crown Prince’s vision for expanded regional cooperation.

He said the visit would build on earlier engagements and pave the way for new memorandums of understanding across various sectors.

The Saudi delegation conveyed interest in a broad range of investment avenues, including agriculture, ports, highways, airport outsourcing, real estate, energy, power distribution and information technology.

The Prime Minister described the present moment as an opportune time to deepen bilateral economic ties through both government-to-government and business-to-business channels.

In response, Prince Mansour thanked the Prime Minister for the warm reception and reaffirmed Saudi Arabia’s continued commitment, through both government and private sectors, to strengthening commercial and investment relations with Pakistan.

The delegation is scheduled to hold further meetings with senior government officials and private-sector representatives during its visit.

The engagement comes amid Islamabad’s renewed efforts to attract foreign investment and diversify its economic partnerships, with senior members of the federal cabinet in attendance, underscoring the government’s emphasis on the visit’s strategic significance.

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CategoriesNews Real Estate Investment

Housing Finance Surges 84% in Approvals as Government Steps Up Access-to-Finance Drive

ISLAMABAD: Federal Finance Minister Senator Muhammad Aurangzeb chaired the fortnightly Access to Finance Steering Committee meeting on Monday, reporting sharp gains across housing, agriculture, SME and export financing since the close of FY26.

Total housing finance climbed from Rs294 billion at end-June to Rs307 billion by mid-August. Under the Wazir-e-Azam Apna Ghar Program, applications rose 52 percent to nearly 139,000, while approvals surged 84 percent to over 46,000, with approved financing nearly doubling to Rs279 billion. Loans disbursed increased 59 percent, crossing Rs38 billion.

The Committee credited the momentum to regulatory reforms, including the State Bank’s revised housing finance rules, a 90:10 loan-to-value ratio and a 65 percent debt-burden ratio, alongside passage of the Financial Institutions (Recovery of Finances) (Amendment) Act, 2026, aimed at strengthening mortgage recovery and lender confidence.

Agriculture borrowers grew to 3.37 million, adding roughly 115,000 since June, with sector financing steady near Rs1.26 trillion. The Zarkhez-e Asaan Zarai Qarza scheme for uncollateralised farm lending recorded over 58,000 registrations.

SME formal financing stood at Rs1.05 trillion across some 330,000 businesses, with a credit-scoring pilot underway across 13 banks. Officials set medium-term targets of Rs1.5 trillion in combined agriculture and SME financing by June 2027, rising to Rs2 trillion by June 2028.

On exports, the newly effective Performance Based Rebate on Incremental Exports offers exporters a 1 percent rebate for growth up to 10 percent, and 2 percent beyond that. The Pakistan Accelerated Vehicle Electrification Programme also gained pace, with EV deliveries tripling to over 1,500 units.

Aurangzeb called for tighter bank-wise monitoring and broader public awareness to sustain credit growth across housing, farming and enterprise sectors.

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CategoriesNews Construction Developments Urban Developments & Planning

Punjab Bans Excavation of Newly Built Roads, Approves Development Projects Across Province

LAHORE: CM Punjab Maryam Nawaz has prohibited excavation or damage to newly constructed roads across Punjab, directing improved coordination between government departments to prevent repeated digging after infrastructure projects are completed.

The directive was issued during a meeting reviewing own-source revenue development schemes across several divisions. Authorities were also instructed to ensure that manholes and sewerage covers remain level with road surfaces, while newly developed roads must include proper drainage systems, signage and lane markings.

The provincial government approved a wide range of infrastructure and urban improvement projects covering Lahore, Multan, Bahawalpur, Sahiwal, Rawalpindi and Faisalabad divisions.

In Lahore, the government approved improvement plans for several major roads, along with beautification work at Lakshmi Chowk. Authorities were also directed to enhance sections of the Orange Line corridor along Multan Road through cleaning, plantation and mural work.

Development schemes involving road construction and widening, sewerage systems, drainage, solar streetlights and public facilities were approved for districts including Kasur, Sheikhupura, Multan, Vehari, Lodhran, Bahawalpur, Sahiwal and Faisalabad.

Rawalpindi district received approval for 13 projects, while additional schemes were cleared for Attock, Murree, Jhelum and Chakwal.

The chief minister also directed departments to establish clear completion timelines for development projects and barred officials from collecting charges from shopkeepers without prior approval.

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CategoriesNews Economy Property Real Estate Investment Urban Developments & Planning

CDA Advances Rs1.4bn Kashmir Chowk Underpass Project in Islamabad

ISLAMABAD: The Capital Development Authority (CDA) has moved forward with plans to construct an underpass at Kashmir Chowk on Murree Road, with the project estimated to cost around Rs1.4 billion.

The proposed underpass, located at Dhokri Chowk near Islamabad Club, is intended to improve traffic movement at the busy intersection. Under the planned arrangement, vehicles travelling from the Serena side towards Rawalpindi will use the underpass, while traffic heading towards Murree will pass over its upper section.

CDA has opened technical bids submitted by Habib Construction Services and M/s Kamran Khan (Kundi Group). During the evaluation process, Kundi Group was declared non-responsive and subsequently filed a grievance with the civic authority. Financial bids will remain unopened until the complaint is decided. Officials expect the matter to be resolved within 15 days.

Separately, CDA is also preparing another underpass at the junction of Faisal Avenue and Margalla Road, where the PC-I is being finalised before the tendering process begins.

The projects form part of CDA’s broader road infrastructure programme aimed at improving traffic flow across Islamabad. Meanwhile, the federally funded 10th Avenue project remains incomplete, with about half of its work still pending despite its original 2024 completion target.

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CategoriesNews Developments Property Real Estate Urban Developments & Planning

CDA Directs Housing Sponsors to Display Approved Layout Plans, Warns of NAB Action

ISLAMABAD: The Capital Development Authority (CDA) has issued a formal directive to all sponsors of private housing schemes and projects in Islamabad Capital Territory (ICT), requiring them to transparently display approved layout plans amid growing concerns about public deception in the housing sector.

The notice, issued by the Planning Wing under reference No. CDA/PLW/DG-SP/General/2026/280 and signed by Ijaz Ahmad Sheikh, Director General (Spatial Planning) and Director Housing Societies, follows a communication from the National Accountability Bureau (NAB) Regional Bureau, Islamabad/Rawalpindi, dated May 11, 2026.

According to the CDA, NAB had observed that several housing sponsors and developers were misrepresenting the approval status of their schemes either by failing to display approved layout plans altogether or by presenting outdated and unapproved versions to prospective buyers.

The authority noted that such practices create a false impression of legal standing, mislead the public, and result in financial loss and hardship.

To curb the trend, the CDA has directed all housing societies to upload and regularly update their approved layout plans on official websites and to prominently display these plans, measuring at least 7×5 feet, at reception areas of project sites and booking offices, accompanied by a QR code linking to verified project information.

The directive further invokes Clause-40 of the 2023 Regulation for Planning and Development of Private Housing Schemes, requiring that all allotment letters be routed through a CDA-linked digital platform and vetted by authorised officials before being deemed valid.

Housing societies have ten days to submit compliance reports with supporting evidence; otherwise, the matter will be referred to NAB for potential legal action. The notice has also been circulated to utility providers, including IESCO and SNGPL, and to regulatory bodies such as PEMRA and SECP, to ensure coordinated enforcement across the sector.

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CategoriesNews Developments Economy Property Urban Developments & Planning

SBP Boosts Home Financing Access With Revised 90% LTV Rule

 ISLAMABAD: The State Bank of Pakistan (SBP) has issued a revised regulatory framework for housing finance, allowing banks and development finance institutions (DFIs) to finance up to 90 percent of a property’s value, up from previous limits under earlier circulars. The new regulations, which took effect immediately upon issuance, supersede several circulars issued between 2019 and 2021, and the central bank has directed all banks and DFIs to ensure strict compliance.

Under the updated rules, the maximum loan-to-value ratio has been set at 90:10, meaning eligible borrowers can secure financing covering up to 90 percent of a property’s assessed value. 

Housing finance may be extended for a range of purposes, including purchasing a house, apartment, or plot; constructing on an already-owned plot; renovating or expanding an existing home; and installing renewable energy systems within housing units. 

The maximum repayment tenor for standard housing finance is fixed at 30 years, while renewable energy financing has a shorter maximum tenor of 10 years.

To safeguard borrowers from over-leveraging, the SBP has capped total monthly loan repayments, including the proposed housing finance and any other consumer loans, at 65 percent of a borrower’s net disposable income. 

Banks and DFIs must also obtain updated credit information reports through the State Bank’s Electronic Credit Information Bureau or a licensed private credit bureau, with approved proxy models available to assess informal income where applicable.

Additional safeguards include mandatory documentation of property title and ownership, lenders’ formal acknowledgement of received documents, and a general requirement that financed properties be mortgaged in the lender’s favour. 

For loans up to Rs. 5 million, a lien supported by a Green Property Certificate may serve as sufficient security. The framework also mandates comprehensive insurance or Takaful coverage equal to the outstanding finance amount, and lenders must clearly disclose coverage terms and charges to borrowers.

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CategoriesNews Budget Developments Economy Property Towers Urban Developments & Planning

LDA’s Rs88.6bn Budget for FY27 Approved Amid Record Revenue Growth

LAHORE: The Lahore Development Authority‘s governing body has approved an Rs88.613 billion budget for LDA and the Traffic Engineering and Planning Agency (TEPA) for the 2026-27 fiscal year, setting a revenue target of Rs47 billion. The decision was made during a meeting chaired by LDA Vice Chairman Mian Marghub Ahmed, with senior officials from housing, finance, local government and WASA departments in attendance.

Under the approved budget, Rs10 billion sourced through a Punjab government loan has been earmarked for structural road projects, while Rs6.3 billion will fund Annual Development Programme schemes.

Development work in LDA City has been allocated Rs12.5 billion, with a further Rs13.5 billion set aside for sustainable development and urban regeneration initiatives. LDA Avenue 1 will receive Rs4 billion, and TEPA has been granted a separate Rs3.5 billion budget alongside amendments to existing building and zoning regulations.

On the revenue side, the authority has set targets of Rs17 billion from town planning activities and Rs19.2 billion from property sales and allotments, with LDA City expected to contribute Rs15 billion of that figure.

The governing body also greenlit several new initiatives, including a pilot maintenance-charge scheme for residential and commercial properties in LDA Avenue 1, Jubilee Town and LDA Enclave, with services offered free for an initial two-month period.

Additionally, officials approved plans to develop commercial plots on 118 kanals along Ferozepur Road near Arfa Karim Tower for a proposed technology park, and allocated Rs100 million toward a child-friendly city initiative undertaken in partnership with UNICEF. 

Other approvals included launching a new residential and commercial sector within LDA City and installing solar lighting across several city blocks. Officials credited the authority’s leadership for achieving a record Rs32 billion in revenue during the previous fiscal year, the highest total in LDA’s history.

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CategoriesNews Economy

Large-Scale Manufacturing Grows 4.98% in FY26, June Output Declines 3.48%

ISLAMABAD: Pakistan’s Large Scale Manufacturing Industries (LSMI) sector recorded growth of 4.98 percent during FY26 (July-June 2025-26) compared to the corresponding period of the previous fiscal year, according to provisional data released under the Quantum Index of Manufacturing (QIM), based on the 2015-16 base year. The index reached 120.55 for the full fiscal year.

For June 2026, the QIM stood at 108.83, reflecting a year-on-year decline of 3.48 percent and a month-on-month contraction of 6.08 percent compared to May 2026.
Automobiles emerged as the strongest-performing sub-sector, registering growth of 57.77 percent for FY26 and 50.53 percent in June alone. Cement production rose 7.36 percent for the fiscal year and 9.76 percent in June, while petroleum products posted gains of 9.70 percent and 0.70 percent, respectively.

Cotton cloth output increased marginally by 0.17 percent for both the month and the year, while cotton yarn recorded cumulative growth of 1.00 percent despite a 1.85 percent decline in June.

Garments registered fiscal-year growth of 5.49 percent, notwithstanding a 13.45 percent contraction in June. Iron and steel production declined 7.84 percent for the year and 11.75 percent in June. Fertiliser output fell 1.99 percent cumulatively despite a marginal 0.83 percent rise in June.

Automobiles contributed the largest share to overall growth, adding 1.56 percentage points, followed by food (1.21), garments (0.91), petroleum products (0.72), cement (0.41) and electrical equipment (0.37). These gains were partially offset by declines in pharmaceuticals (-0.54), iron and steel products (-0.34), chemicals (-0.20) and textiles (-0.11).

Sectors posting fiscal-year growth included food, beverages, tobacco, wearing apparel, paper and board, coke and petroleum products, rubber products, non-metallic minerals, fabricated metal, computer and electronics products, electrical equipment, machinery, automobiles, other transport equipment and furniture, while textiles, leather, wood products, chemicals, fertilisers, pharmaceuticals and iron and steel products recorded declines.

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