Islamabad Capital Territory

Islamabad | ReNews Pakistan
The Capital Development Authority (CDA) has recovered approximately 750 kanals of acquired land in Islamabad’s Sector E 12, removing a longstanding obstacle to the sector’s planned development. According to the authority, the land had remained under unauthorised occupation and had prevented development activities from progressing in parts of the sector.

CDA Chairman Sohail Ashraf visited Sector E 12 to review the progress of development activities and the land clearance operation. He was briefed that approximately 750 kanals of acquired land had been cleared, enabling the authority to restore the land to its intended purpose and proceed with development in accordance with the approved sector plan.

The CDA chairman directed the relevant engineering and other departments to accelerate development work on the cleared land. The authority said all infrastructure and development activities must be carried out in accordance with approved plans, prescribed standards and applicable laws.

The recovery is expected to facilitate the extension of infrastructure and development activities into areas that had previously remained inaccessible because of unauthorised occupation. The clearance therefore removes a physical impediment to planned development and could allow the CDA to move forward with roads, services and other infrastructure in the affected areas.

The authority also reviewed outstanding claims involving affectees and allottees. The CDA said allotment letters had already been issued to genuine and eligible affectees whose claims were verified and found admissible after completion of the required legal and administrative formalities. Other legally admissible claims will continue to be processed through the prescribed procedures.

The CDA has maintained that acquired and public land cannot be used for unauthorised construction, occupation or commercial exploitation. During the verification and clearance process, the authority also identified unauthorised structures and occupation and collected relevant information for further action in accordance with law.

Sector E 12 has faced prolonged development delays. The sector was launched in 1989, but development remains incomplete after 37 years. The latest recovery of 750 kanals represents a major step in removing one of the longstanding physical barriers to the implementation of the sector’s development plan.

From a real estate perspective, the clearance of acquired land and acceleration of infrastructure work could improve practical connectivity and development prospects in the affected parts of E 12. However, property conditions can vary considerably between subsectors and individual locations. Buyers and investors therefore need to assess actual road access, development status, possession and other on ground conditions rather than applying a uniform assessment across the entire sector.

The CDA has reiterated its intention to maintain the pace of development, address remaining impediments and facilitate allottees and citizens awaiting the completion of Sector E 12 in accordance with the approved development plan.

Islamabad | ReNews Pakistan
The Federal Board of Revenue (FBR) has moved to strengthen enforcement against registered businesses that fail to integrate with its computerized monitoring system. Under amendments to the Sales Tax Rules 2006, businesses required to provide real time production monitoring or recording and reporting of sales and receipts will have to install the prescribed electronic monitoring, video surveillance or digital eye systems and integrate them with the FBR system.

Under the Finance Act 2026 27, businesses required under the relevant tax laws to integrate with the FBR computerized system for real time production monitoring or for recording and reporting sales or receipts will be entitled to a 10% tax credit on eligible investment made exclusively for the purchase, acquisition, installation or implementation of the required equipment, hardware, software and other electronic components.

The Finance Bill 2026 specifies that the tax credit will be available for the tax year in which the electronic resource is installed, integrated and configured with the FBR computerized system. The credit will be calculated at 10% of the amount actually invested in the eligible electronic resource, while operation and maintenance expenses will not qualify for the credit.

The enforcement framework provides for action against registered businesses that fail to comply with the integration requirements. Business premises may be sealed where the prescribed monitoring and integration requirements are not fulfilled, with police assistance available where required.

Under the procedure, an Assistant Commissioner Inland Revenue or an officer of higher rank may submit a written report to the concerned Commissioner Inland Revenue regarding non compliance by a business. The Commissioner may initiate an inquiry on the basis of the report and, after completing the inquiry, forward the findings to the Chief Commissioner.

The Chief Commissioner will then issue a written order on whether the business premises should be sealed. Depending on the circumstances, the entire business premises or only a specified portion may be sealed under the procedure.

The electronic monitoring framework is designed to enable real time collection and transmission of production data to the FBR system. Existing Sales Tax Rules provide for the use of video cameras, sensors and other approved equipment for monitoring production, transmitting data to the FBR central control room and maintaining production records.

The FBR has already introduced electronic production monitoring through video analytics in several specified sectors. In 2026, the Board issued Sales Tax General Orders covering electronic monitoring of production in sectors including tiles, bottled water, packaged juices, packaged milk and aerated beverages.

The FBR has stated that electronic monitoring is intended to improve tax compliance, reduce under reporting and strengthen documentation of production and sales. Its existing framework also provides for penalties, legal proceedings and sealing of premises in cases of non compliance with prescribed electronic monitoring requirements.

For businesses required to integrate with the FBR system, the 10% tax credit provides a tax adjustment mechanism against eligible investment in the technology needed for compliance. At the same time, failure to meet mandatory integration requirements can lead to enforcement action, including sealing of all or part of the business premises under the prescribed procedure.

Islamabad | ReNews Pakistan
The Association of Builders and Developers of Pakistan (ABAD) has announced a potential development in construction finance, stating that developers may be able to access project financing of up to Rs 10 billion at an interest rate of 5%, subject to the project being operated through an escrow account.

Outgoing ABAD Chairman Muhammad Hassan Bakshi described the development as a significant change for Pakistan’s construction and real estate sector, particularly for developers seeking financing for large scale projects.

Developers in Pakistan have traditionally relied substantially on booking amounts and customer instalments to finance construction activity. Project financing linked to an escrow account could provide a mechanism to separate funds allocated to a particular project from a developer’s other business activities. Such an arrangement could improve transparency in the use of project funds and potentially strengthen lender confidence.

Under an escrow based arrangement, funds associated with a specific development project are maintained in a designated account, with their use linked to the requirements of that project. This can also provide financial institutions with greater visibility over the movement and utilisation of project related funds.

However, the exact terms of the Rs 10 billion financing facility and the 5% fixed interest rate announced by ABAD require independent confirmation from participating financial institutions. The figures should therefore be treated as ABAD’s announcement rather than as a universally available financing facility for all developers.

The State Bank of Pakistan has already issued guidelines concerning financing for private developer led housing projects, including escrow arrangements for under construction units. However, the currently published SBP material does not independently detail a blanket developer financing facility of up to Rs 10 billion at a fixed rate of 5%.

If implemented with clear eligibility criteria and operational terms, the proposed financing could provide developers with an alternative source of capital for large construction projects and potentially reduce reliance on customer booking amounts and instalments as the primary source of construction funding.

The requirement for an escrow account could also introduce greater financial discipline by linking project financing and project related receipts to the development for which the funds were raised.