Lahore | ReNews Pakistan
Following the Federal Budget 2026-27, Pakistan’s real estate sector has once again come into the spotlight. Property dealers, builders and investors are closely watching the government’s proposed tax reforms, measures aimed at easing property transactions and possible incentives for the construction sector.
Recent economic policies and efforts to broaden the tax net have also had an impact on the property market.
According to market circles, if certain taxes imposed on property sale and purchase are reduced, investment activity may pick up in major cities, including Islamabad, Lahore and Karachi. Some builders say the construction industry is already under pressure due to rising costs and weak demand, and any proposed facilitation under government policy could provide much-needed relief to the market.
On the other hand, the issue has triggered a mixed response on social media. In real estate groups on Facebook and YouTube, several users described the budget proposals as positive. However, a large number of users questioned whether these announcements would actually be implemented or remain limited to policy statements.
Users have also expressed concern over NOC-related issues, delays in projects, low liquidity in the market and increasing tax monitoring measures. Experts say the current environment can be described as “cautious optimism,” where investors are waiting for the practical implementation of government policies before making final decisions.

Lahore | ReNews Pakistan
The Lahore High Court has rejected a request to immediately suspend the Punjab government’s notifications regarding agricultural tax and has directed the respondents to submit their replies within two weeks.
The matter came before the court on petitions filed by MPA Ijaz Shafi and the Judicial Activism Panel, challenging the increase in agricultural income tax in the province. The petitioners questioned the legality and constitutional validity of the revised tax rates, arguing that the government had altered the agricultural tax structure without proper legislative approval.
During the hearing, counsel for the petitioners argued that taxation could not be imposed, increased or modified through executive notifications alone. He maintained that any change in tax rates required the approval of the provincial legislature and must follow the constitutional process.
The counsel contended that the impugned notifications bypassed the role of the Punjab Assembly and violated several constitutional provisions, including Articles 4, 9, 19-A, 25, 38, 77 and 127. He argued that the executive authorities had acted beyond their powers by revising agricultural income tax rates without democratic oversight and legislative sanction.
The petitioners further submitted that the revised agricultural tax regime had placed an unfair burden on farmers and the agricultural community. They claimed that the measures were discriminatory in nature and had the potential to affect farmers’ livelihoods, rural incomes and overall economic stability.
According to the petitioners, the agriculture sector was already facing multiple challenges, including rising input costs, unstable crop prices and financial pressure on growers. They argued that imposing additional tax liabilities without proper debate and approval by the assembly would worsen the economic difficulties of farmers.
After hearing the initial arguments, the Lahore High Court declined to grant interim relief and refused to suspend the contested notifications at this stage.
However, the court issued notices to the respondents and sought their replies within a fortnight.
The case is expected to determine whether the provincial government’s revised agricultural tax measures were introduced in accordance with constitutional requirements or whether they require formal approval from the elected assembly.

Lahore: [ReNews Pakistan]
The Lahore Development Authority has intensified its crackdown on illegal commercial buildings and commercial fee defaulters, sealing 116 properties during a large-scale operation across different areas falling under LDA control.
According to the LDA, the operation was carried out by the Town Planning Wing on the directions of LDA Director General Tahir Farooq. LDA teams conducted actions in Gulberg, Model Town Extension, GT Road, Gulshan Ravi, Samanabad, Government Employees Cooperative Housing Scheme, Mustafa Town and Azam Garden, among other locations.
During the operation, several properties were sealed over illegal commercial use, violations of building regulations and non-payment of commercial fees.
The LDA said 27 properties were sealed in Gulberg and Model Town Extension over illegal commercial use and non-payment of commercial fees. Similarly, 52 properties were sealed on GT Road, in Gulshan Ravi and Samanabad for illegal commercial use, while action was taken against 15 properties in Government Employees Cooperative Housing Scheme.
As part of the recovery operation, Town Planning Wing teams also sealed another 22 properties in Mustafa Town and Azam Garden. Officials said the purpose of these actions was to curb illegal commercial activities, recover outstanding dues and ensure implementation of LDA regulations.
The sealed properties included private schools, beauty salons, clinics, grocery stores, cafés, restaurants, food points, electric stores, estate offices, bakeries, pharmacies, auto workshops, shops, offices and other business establishments.
The operation was supervised by Chief Town Planner One Asaduz Zaman and Chief Town Planner Two Azhar Ali. LDA Director General Tahir Farooq said indiscriminate action against illegal commercial buildings and commercial fee defaulters would continue, adding that no leniency would be shown to those violating the law.