LAHORE DIVISION

Karachi | ReNews Pakistan The Sindh High Court has upheld the National Accountability Bureau’s action to cancel the illegal allotment of approximately 800 acres of valuable government land in Karachi, dismissing multiple petitions filed by the beneficiaries of the disputed transactions. According to details released by NAB, the court declared the allotments void from the outset and held that no legal protection could be extended to transactions built on a fraudulent foundation. The court also affirmed that NAB’s intervention and the cancellation of the allotments were lawful. The case relates to one of Karachi’s major land scandals, which dates back to the early 1990s. NAB stated that the state owned urban land was allegedly transferred to private parties through fabricated evacuee claims, forged documents and the alleged involvement of corrupt officials. The land was later sold through multiple transactions at substantial profits. Some of the disputed land includes facilities that form part of Karachi’s water supply system, while other portions had been reserved for public parks. Following NAB’s intervention, the bureau worked with the Sindh Board of Revenue to cancel fraudulent land records and restore the properties to government control. The petitioners had argued before the court that they had not been given a proper hearing and were bona fide purchasers who were unaware of the alleged fraud. However, the court rejected these arguments and directed any affected buyers to seek legal remedy against those who sold them the disputed land, rather than against the State. NAB said the ruling sends a clear message that government land obtained through fraud or illegal allotment will be traced and restored for public use.

Lahore | ReNews Pakistan Pakistan Railways has decided to auction 81 warehouses in Lahore on a ten year lease as part of its effort to place more of its land and commercial assets into productive use. According to a circular issued by the Divisional Superintendent of Pakistan Railways Lahore Division, the warehouses are located in and around Badami Bagh. They vary in size, with each site covering an area ranging from approximately 3,000 to 34,000 square feet. The circular states that the warehouses were originally established to meet various administrative and operational requirements of Pakistan Railways. The railway administration has now decided to offer them for auction under fixed term lease arrangements. The commercial use of railway land and warehouses can create an additional source of revenue for the organisation. Given Badami Bagh’s importance as a commercial and transport hub, the warehouses may attract interest from businesses involved in logistics, storage, wholesale trade and other commercial activities. Successful bidders will be granted leases for a period of ten years. Financial terms, auction dates, bidding procedures and other conditions will be determined in accordance with the detailed requirements issued by the relevant railway authorities.

Lahore | ReNews Pakistan The Punjab government has introduced a 16 percent General Sales Tax on rental properties across the province, as part of a new fiscal measure aimed at expanding the tax base and improving documentation in the property sector. The new tax regime will come into effect from July 1 and will apply to rented non-residential buildings and other immovable properties. Under the policy, owners receiving rental income from commercial and other non-residential properties will be required to pay GST at the rate of 16 percent. Officials said the measure is part of the provincial government’s broader strategy to bring rental income and immovable property transactions into the formal tax system. The tax will also apply to smaller residential properties that are rented out by owners, bringing a wider category of rental properties under the provincial tax framework. Alongside the GST measure, the Punjab government has also revised the property tax system. Taxpayers registered before January 1, 2025, will receive a 20 percent cap on capital value assessment under the revised framework. The government has also announced a 5 percent discount for property owners who pay their property tax under the self-assessment scheme. To facilitate taxpayers and improve collection efficiency, the government has introduced digital payment options through the E-Pay Punjab platform. Authorities believe that online payments will make the process more transparent, reduce manual handling and encourage timely compliance. In cases of non-payment, surcharges will be imposed on a quarterly basis in addition to the original tax liability. The surcharge will increase after October 31, January 31, April 30 and July 31 each year. The new policy has been notified across Punjab and is expected to have a direct impact on landlords, tenants and the commercial rental market. Property sector stakeholders are likely to closely monitor its implementation, particularly its effect on rental costs and business expenses.