National Real Estate News

Lahore | ReNews Pakistan
The Federal Board of Revenue (FBR) has introduced a revised sales tax collection mechanism for Pakistan's steel industry, imposing rates of up to Rs 35 per unit of electricity consumed by certain manufacturers, including steel melting units, re-rolling mills and businesses operating captive power generation facilities.

The measure, introduced through SRO and subsequently amended through SRO , establishes different tax rates based on the nature of industrial operations, sources of raw materials and electricity consumption arrangements.

According to the FBR notification, the original framework became effective on July 1, 2026, with subsequent amendments introducing further provisions for specific categories of steel manufacturers and industrial units operating in designated regions.

Under the new arrangements, steel melters, re rolling mills and composite steel melting and re rolling units are required to pay sales tax calculated on the basis of electricity consumed during production.

Manufacturers using locally sourced remeltable iron and steel scrap are subject to a general sales tax rate of Rs 30 per electricity unit consumed.

Steel re rollers manufacturing steel bars using either imported or locally sourced raw materials are also subject to a rate of Rs 30 per unit under the amended framework.

However, manufacturers meeting specified imported scrap requirements can qualify for a substantially lower sales tax rate of Rs 5 per electricity unit.

The concession applies to eligible manufacturers whose imported scrap consumption exceeds 70 percent of their relevant raw material consumption during the preceding 12 months, subject to the prescribed documentation and monitoring requirements.

Eligible purchases of specified scrap directly from businesses registered under the Export Facilitation Scheme (EFS) may also qualify for the reduced rate.

The FBR has linked concessional treatment to compliance with its computerized monitoring and documentation systems, making verification of raw material purchases and production records an important part of determining eligibility.

Under the original notification, steel manufacturers operating through captive power arrangements or using self generated electricity were assigned a sales tax rate of Rs 35 per unit consumed.

The framework is therefore not restricted to factories purchasing electricity from distribution companies but also covers relevant steel manufacturers generating electricity independently.

This includes certain industrial operations using captive generation facilities or alternative energy sources for production.

The FBR has also established electricity consumption thresholds for classifying steel manufacturers.

Under the original rules, manufacturers consuming 500,000 or more electricity units per month through a single meter are generally categorized as steel melters or composite units, depending on the nature of their manufacturing activities.

Manufacturers consuming fewer than 500,000 units per month fall under the steel re-rolling category under the prescribed classification mechanism.

The September 2026 amendments also introduced specific provisions for steel manufacturers operating in the former Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA).

Peshawar | ReNews Pakistan

The National Accountability Bureau (NAB) has identified evidence of serious financial and administrative irregularities during a preliminary inquiry into the Rs 100 billion Khyber Pakhtunkhwa Cities Improvement Project (KPCIP), raising questions over contractor payments, land compensation, banking records, tax deductions and the transfer of acquired land to government departments.

According to NAB sources, scrutiny of the project's financial records has identified several payments for which supporting receipts are unavailable. Investigators have also encountered cases in which essential information relating to beneficiaries' bank accounts was reportedly not retained in the records of the banks concerned.

The inquiry has further identified discrepancies amounting to millions of rupees between the cheque register and entries in the government's SAP financial management system concerning payments made to a contractor.

To establish the reasons for these differences, NAB has sought detailed payment records for the period from 2023 to 2025 from the office of the Accountant General and the project's Project Management Unit (PMU).

The accountability bureau has also requested documentation from the PMU, the relevant bank and the federal Ministry of Finance regarding payments made to vendors, contractors and tax authorities.

Another major area under investigation concerns compensation for land acquired for development schemes in Swat, Abbottabad and Kohat.

According to information emerging during the preliminary inquiry, funds were withdrawn under the land compensation head, but certain affected landowners reportedly did not receive their payments.

NAB has consequently sought comprehensive records from the relevant district administrations, including details of land acquisition, compensation assessments, release of funds and payments made to affected property owners.

Investigators are expected to use these documents to establish whether the allocated funds were disbursed in accordance with the applicable legal and financial procedures.

The bureau has also sought bank statements for relevant government accounts covering the period from 2021 to 2026 to examine profits earned on public funds and determine whether the associated financial transactions were properly recorded and accounted for.

Records relating to the Abbottabad district administration's accounts have separately been requested to examine potential financial losses linked to advance tax payable by land sellers and other beneficiaries.

The preliminary inquiry has additionally raised questions about the ownership status of land acquired for the project.

According to NAB sources, some of the acquired properties have yet to be formally transferred to the Government of Khyber Pakhtunkhwa or the relevant government departments despite their acquisition for public development purposes.

The bureau has sought complete documentation concerning the land, explanations for delays in ownership transfers, and details of stamp duty, local council taxes and amounts deposited into the government treasury.

Independent land valuation reports prepared by the PMU have also been requested to assess whether compensation assessments were consistent with the rates prescribed by the Board of Revenue and the relevant project requirements.

The Khyber Pakhtunkhwa Cities Improvement Project is a major urban infrastructure initiative supported by international development financing.

The project is designed to improve municipal infrastructure and essential urban services in five cities: Peshawar, Mardan, Kohat, Abbottabad and Mingora.

Its principal components include improvements in water supply systems, sewerage and drainage infrastructure, solid waste management, urban environmental conditions and the institutional capacity of municipal service providers.

According to the Asian Development Bank (ADB), the project is expected to benefit approximately 3.5 million residents across the five cities.

The financing structure includes support from the Asian Development Bank and the Asian Infrastructure Investment Bank, placing particular importance on financial transparency, procurement procedures and compliance with the safeguards attached to international development financing.

Meanwhile, the KPCIP Project Director has responded to the observations raised during the inquiry, maintaining that payments were made directly into beneficiaries' bank accounts and that complete supporting documentation had already been furnished to audit authorities.

The Project Director explained that payments through cheques were processed from the revolving fund account through the Accountant General's office, while certain third-party payments were made directly by the Asian Development Bank into beneficiaries' bank accounts.

Regarding discrepancies in contractor payments, he stated that the Accountant General's office records cheque-based payments in the SAP system, whereas the PMU maintains records of payments made through both the revolving fund and ADB's direct payment arrangements.

He maintained that reconciliation of these two payment mechanisms should account for the apparent differences in the recorded totals.

On the issue of land compensation, the Project Director said the required funds had been released to the relevant deputy commissioners and district collectors in accordance with the Land Acquisition Act, 1894.

He explained that assessment and disbursement of land compensation were the legal responsibilities of the respective district collectors.

According to him, a substantial number of affected landowners have already received compensation, while certain payments remain pending because of litigation, legal complications, difficulties in contacting landowners and other administrative obstacles.

He said the outstanding funds remained with the relevant district authorities and would be disbursed to eligible landowners after the resolution of the outstanding issues.

The Project Director also clarified that independent land valuation studies were required under the Asian Development Bank's safeguard policies, the financing agreements and the approved land acquisition and resettlement framework.

NAB's examination remains at the preliminary inquiry stage, and the allegations have not been established through a final investigative or judicial determination.

The eventual findings will depend on the reconciliation of financial records, verification of land compensation payments, examination of banking transactions and scrutiny of the documentation obtained from the relevant government departments and project authorities.

Karachi | Renews Pakistan
Whether agriculture contributes enough to Pakistan's tax revenues compared with its share of the economy has long been a recurring debate in the country's economic discourse. However, agricultural experts argue that the sector's tax potential cannot be judged simply by its contribution to GDP, as farmers' actual profitability is shaped by volatile crop prices, yields, input costs, weather shocks and changing market conditions.

They cautioned that treating the value of agricultural production as equivalent to taxable income could produce unrealistic revenue expectations, particularly for Pakistan's millions of small farmers who often sell crops at prices below official or expected rates.

Mahmood Nawaz Shah, President of the Sindh Abadgar Board, said the fundamental distinction in the taxation debate was between economic output and actual farm income. He cited wheat as an example, saying farmers could incur losses even though their production continued to contribute to GDP. During the 2024-25 wheat season, he said, the government announced prices around Rs4,000 per 40 kg and later Rs3,900, while farmers in major producing areas sold wheat at substantially lower rates.

"If the farmer sells below his cost or expected price, how can that production be treated as taxable income?" he asked, arguing "GDP captures the value of production while taxation should ultimately be linked to profitability." Shah said similar questions needed to be examined for cotton, maize, rice and sugarcane, where production, yields and market prices can vary considerably from year to year.

karachi | ReNews Pakistan
Consumers Association of Pakistan (CAP) Chairman Kaukab Iqbal has expressed serious concern over the rapidly increasing number of residential and commercial real estate projects being advertised in Karachi and across the country, and called upon the government to introduce immediate and effective legislation to protect citizens' lifelong savings and take strict action against unapproved projects.

Iqbal said that a large number of real estate advertisements were currently being published and aired, promoting new projects and attracting consumers through offers of cars, prizes, discounts and other incentives. However, an ordinary citizen often has no easy way of determining which builder is legally operating, which project has been approved by the relevant authority, and whether the developer actually possesses the required land and legal permissions.

He said that construction, housing and real estate activities were essential for economic growth, but economic activity could not be allowed to take place at the expense of consumers' hard-earned savings. There have been instances where citizens paid substantial amounts for properties, only for projects to remain incomplete, possession to be delayed or their investments to become stuck for years.

The CAP chairman said the government must first establish an effective regulatory framework for all builders and developers, and no person or company should be permitted to launch, advertise, book or collect money from the public for a residential or commercial project without obtaining complete approval from the relevant authority.

He demanded that every real estate advertisement must prominently display the approval number, NOC number and date of approval issued by the competent authority. Where a project falls under the jurisdiction of the Sindh Building Control Authority, a development authority or any other competent institution, these details must be clearly mentioned in the advertisement so that consumers can verify the legal status of a project before investing their money.

Islamabad | ReNews Pakistan
The federal government has set an ambitious target of providing Rs 700 billion in housing loans to facilitate the financing of 125,000 residential units during 2026 under the Prime Minister’s Apna Ghar scheme, as part of broader efforts to expand access to housing finance, strengthen financial inclusion and stimulate economic activity across Pakistan.
The target was discussed during a high-level meeting chaired by Prime Minister Shehbaz Sharif to review progress on financing initiatives for the housing sector, small and medium enterprises (SMEs) and agriculture.
During the meeting, senior officials briefed the prime minister on measures being taken to increase the availability of housing loans, simplify financing procedures and improve access to institutional credit for individuals and businesses.
The government’s housing financing initiative is aimed at addressing the difficulties faced by prospective homeowners in obtaining bank loans, particularly those seeking financial assistance to construct or purchase residential properties.
Under the proposed financing framework, banks and other participating financial institutions are expected to play a central role in extending housing credit to eligible applicants, supporting the government’s objective of facilitating home ownership and encouraging investment in residential construction.
The planned financing of Rs 700 billion represents a substantial commitment to the housing sector, which has significant linkages with construction materials, manufacturing, transportation and other economic activities.
Greater access to housing finance could also generate additional demand for construction-related industries, including cement, steel, electrical equipment, sanitary fittings and building materials, while potentially creating employment opportunities across the construction supply chain.
During the briefing, officials informed the prime minister that the National Bank of Pakistan (NBP) had achieved a housing finance approval rate of 76 percent, which was described as an encouraging development in efforts to improve the processing and approval of housing loan applications.
The meeting also reviewed initiatives intended to strengthen the availability of financing for small and medium enterprises, which play an important role in employment generation, domestic production and commercial activity.
Officials informed the meeting that steps were being taken to facilitate SME access to formal banking channels, enabling businesses to obtain the capital required for expansion, modernisation and improved operational efficiency.
Particular emphasis was placed on helping small and medium enterprises adopt modern technologies and secure the financial resources necessary to improve productivity and compete more effectively in international markets.
The government is also working on financial mechanisms aimed at addressing lending risks and encouraging greater participation by financial institutions in sectors that have traditionally faced difficulties obtaining adequate credit.
In this regard, the meeting examined joint risk-sharing arrangements designed to distribute lending risks among participating institutions and support greater credit availability.
Officials also briefed the prime minister on supply chain financing arrangements that could help businesses meet their working capital requirements, improve liquidity and maintain the continuity of commercial operations.
Improved data sharing between relevant institutions was identified as another important component of the financing reforms, with the objective of strengthening credit assessments, streamlining application procedures and supporting more efficient lending decisions.
The meeting was informed that digital financing systems were being expanded to enable consumers to apply for smaller loans without physically visiting bank branches.
The initiative is intended to reduce procedural difficulties, improve convenience for borrowers and extend access to financial services through technology-based platforms.
As part of the wider digital transformation of lending services, the government plans to activate a dedicated SME portal by the end of November 2026.
The portal is expected to serve as a platform for facilitating access to financing for small and medium enterprises, potentially improving coordination between businesses, financial institutions and relevant government agencies.
The meeting also reviewed agricultural financing, recognising the importance of improving credit availability for farmers and agricultural businesses to support production and associated economic activities.
Expanding access to agricultural credit remains an important element of the government’s broader financing agenda, particularly in facilitating investment in farming operations, agricultural inputs and productivity improvements.
The simultaneous focus on housing, SMEs and agriculture reflects the government’s efforts to direct greater financial resources towards productive economic sectors while widening participation in the formal financial system.
The effectiveness of these initiatives will depend on the implementation of financing arrangements, the responsiveness of participating banks, the accessibility of application procedures and the ability of eligible borrowers to obtain credit on workable terms.
The Rs 700 billion housing finance target, alongside the planned SME portal, digital lending expansion and institutional risk-sharing arrangements, forms part of the federal government’s wider strategy to improve access to financing, support private sector activity and encourage sustainable economic development across the country.

Islamabad | ReNews Pakistan
The Capital Development Authority (CDA) has announced plans to auction five commercial hotel plots and seven petrol pump sites at prominent locations across Islamabad on October 12 and 13, 2026, as part of efforts to attract private sector investment, promote commercial development and generate revenue through the utilisation of valuable land assets in the federal capital.
According to the announced auction arrangements, the authority has fixed Rs 250 million (Rs 25 crore) as token money for participation in the bidding process, while separate financial and operational conditions have been outlined for the hotel plots and petrol pump sites.
The auction of five hotel plots is scheduled for October 12 at 10:00am at the Jinnah Convention Centre, Islamabad, while the auction of seven petrol pump sites will take place at the same venue on October 13.
The initiative is expected to create investment opportunities in Islamabad’s hospitality and fuel retail sectors, with the authority offering payment facilities and financial incentives to encourage participation from local and overseas investors.
The five hotel plots being offered for auction are located in commercially significant areas of the capital, including Plot No. 22 in D-12 Markaz, Convention Centre Hotel Plot No. 6 and Five-Star Hotel Plot No. 8 in Sector F-5/1.
Other properties include a hotel plot in the Northern Strip of Sector E-11 and another strategically located along Srinagar Highway between the Sports Complex and Margalla Hotel.
These locations have been identified for hotel development, offering potential investors opportunities to establish hospitality facilities in areas connected to Islamabad’s major commercial districts, recreational destinations and transport corridors.
To facilitate investment, CDA has introduced a one-year payment facility for successful bidders purchasing hotel plots.
Under the announced terms, investors will be eligible to obtain approval of their building plans after depositing 25 percent of the total bid amount, while physical possession of the allotted property will be handed over following payment of 75 percent.
The authority has also announced financial incentives for investors choosing to settle their outstanding payments ahead of schedule.
Successful bidders making full payment within 30 days will qualify for a five percent discount, while a further five percent discount has been announced for investors completing their payments in US dollars.
These incentives are intended to encourage timely payments and attract additional investment, including foreign currency inflows from overseas Pakistanis and international investors.
CDA has also introduced arrangements to facilitate participation by overseas investors, who will be allowed to obtain auction tokens at least one day before the scheduled auction.
Such investors will be able to make the required payments through Roshan Digital Accounts or recognised local banking channels, providing additional options for participating in the bidding process.
Alongside the hotel plot auction, the authority will offer seven petrol pump sites through a separate competitive bidding process scheduled for October 13.
Unlike the hotel plots, which are being offered under property auction arrangements, the petrol pump sites will be leased as a single package for a period of 20 years.
Participation in this auction will be restricted to registered Oil Marketing Companies (OMCs), ensuring that the sites are operated by companies authorised to conduct petroleum marketing activities.
The identified locations include sites near Lake View Park on Murree Road, Blue Area F-10, I-12 Markaz, G-8 Markaz, Move Area G-8/1 and Move Area G-11/1.
Under the proposed leasing arrangements, monthly rental payments will be determined through open competitive bidding, with successful bidders required to pay rent in advance.
The lease agreements will also incorporate an annual rental escalation of 10 percent, providing for regular increases in rental income over the duration of the contracts.
CDA has imposed a strict development timeline for the successful oil marketing company, requiring the construction and development of the petrol pump sites to be completed within a maximum period of five months.
The successful bidder will be responsible for all expenditure associated with construction, development and operational readiness, including utility connections, regulatory approvals, taxes and licensing requirements.
The arrangement is designed to transfer development responsibilities to the private operator while allowing CDA to generate recurring rental revenue from its land holdings.
The auction package also places responsibility for securing the necessary permissions and complying with applicable regulations on the successful bidder.
To ensure wider participation and provide investors with information on eligibility requirements, financial conditions and auction procedures, CDA has made its revised auction brochure available through multiple channels.
Interested investors can obtain the brochure from the CDA One Window Directorate and designated branches of MCB Bank, Habib Bank Limited, United Bank Limited, Askari Bank and Bank of Punjab.
The auction documents can also be downloaded from the official CDA website.
The upcoming auctions represent an effort by the capital's civic authority to encourage commercial development through private investment while generating revenue from strategically located properties.
The hotel plots could support future investment in Islamabad’s hospitality infrastructure, while the petrol pump leasing package offers registered oil marketing companies an opportunity to expand their presence across important residential and commercial sectors of the capital.
The actual investment commitments, auction proceeds and rental revenue will depend on bidder participation and the final offers received during the competitive bidding process on October 12 and 13.

Islamabad | ReNews Pakistan
Prime Minister Shehbaz Sharif has approved the commercial utilisation of Pakistan Railways land worth billions of rupees to secure bank financing for the Main Line-1 (ML-1) railway upgradation project, as the federal government seeks alternative funding sources to modernise the country's railway infrastructure and improve the financial sustainability of Pakistan Railways.
The decision was made during a high-level meeting on railway reforms and the ML-1 project, chaired by the prime minister in Islamabad on Wednesday.
During the meeting, Shehbaz Sharif directed the relevant authorities to accelerate progress on ML-1 and introduce corporate-style reforms aimed at improving operational efficiency, strengthening financial management and transforming Pakistan Railways into an economically self-sufficient organisation.
The prime minister approved a proposal to utilise valuable railway land for commercial development and secure financing from banks through projects established on these properties.
He instructed the concerned ministries and departments to submit a comprehensive strategy within two weeks, outlining the commercial potential of railway land and the proposed arrangements for obtaining financial resources for ML-1.
The government intends to use these commercial opportunities to generate financial support for railway modernisation while reducing pressure on conventional public-sector funding sources.
The prime minister stressed that Pakistan Railways possesses valuable land and other assets whose commercial potential has not been fully utilised.
He emphasised that effective management and commercial development of these properties could contribute significantly to railway infrastructure development and the national economy.
The meeting also reviewed progress on identifying and recovering railway land occupied by encroachers.
Shehbaz Sharif appreciated the coordinated efforts of the National Accountability Bureau (NAB) and the Ministry of Railways in identifying and retrieving encroached railway properties.
He said the recovery and productive utilisation of valuable railway land would help strengthen the financial position of Pakistan Railways and create opportunities for commercial investment.
Officials informed the meeting that the proposed upgradation of the 1,726-kilometre ML-1 railway corridor had been divided into four major sections: Karachi-Rohri, Rohri-Multan, Multan-Lahore and Lahore-Peshawar.
According to the briefing, international financing is being utilised for the upgradation of the Karachi-Rohri section, while arrangements are being developed to finance the remaining sections through domestic resources.
The meeting reviewed progress on the Karachi-Rohri section, various stages of the wider ML-1 project and the status of land owned by Pakistan Railways.
The ML-1 project is considered a major infrastructure initiative aimed at modernising Pakistan's principal railway corridor, improving passenger transportation and expanding freight movement between major commercial and industrial centres.
The prime minister said upgrading the railway network was essential for improving transportation facilities, increasing freight capacity and strengthening the country's logistics infrastructure.
He also emphasised the need to modernise the management structure of Pakistan Railways by adopting corporate practices that promote financial discipline, operational efficiency and better utilisation of available resources.
Shehbaz Sharif acknowledged the efforts of Federal Minister for Railways Hanif Abbasi to improve railway operations and move the organisation towards profitability.
The meeting was attended by federal ministers Ahsan Iqbal, Ahad Khan Cheema, Muhammad Aurangzeb and Hanif Abbasi, Minister of State Bilal Azhar Kayani, State Bank Governor Jameel Ahmad, NAB Chairman Lieutenant General (Retd) Nazir Ahmad Butt and other senior officials.
In a separate high-level meeting on access to finance, the prime minister directed authorities to eliminate obstacles preventing the flow of bank financing to the housing, agriculture and small and medium enterprise (SME) sectors.
He stressed the need for a more effective lending system that could improve access to financial services, facilitate economic activity and support business development.
The prime minister directed the Small and Medium Enterprises Development Authority (SMEDA) to introduce measures aimed at strengthening SMEs, improving productivity, promoting modern technology and facilitating their integration into global value chains.
He also ordered that a dedicated SME portal be made operational by the end of November 2026 to facilitate access to financing and enable real-time monitoring of loans and other banking facilities.
The meeting reviewed the lending performance of the National Bank of Pakistan (NBP) and First Women Bank.
Shehbaz Sharif appreciated NBP's reported 76 percent approval rate for housing finance applications and encouraged further improvements in lending operations.
He also directed provincial governments to accelerate the digitisation of land records, following the model adopted in Punjab, to simplify property verification and make housing loans more accessible and transparent.
Officials informed the meeting that 71,690 loans worth approximately Rs 426 billion had been approved under the Prime Minister's Apna Ghar Scheme, while Rs 76 billion had been disbursed to 13,214 beneficiaries.
The government has set a target of providing Rs 700 billion in financing for 125,000 housing units during the current year.
The two meetings reflected the government's broader emphasis on improving access to financing, utilising public-sector assets more productively and strengthening the financial and operational performance of major national institutions.

Gilgit | ReNews Pakistan
The Pakistan Army has completed the construction of a 66 kilometre road connecting Shagma in Astore district with Manthokha in Skardu district, marking a significant development in efforts to improve road infrastructure, strengthen regional connectivity and facilitate economic activity in the mountainous region of Gilgit Baltistan.
The newly completed Shagma Manthokha road provides an alternative transportation link between Astore and Skardu, considerably reducing travel time and improving accessibility for communities that have long faced difficulties travelling through the region's challenging mountainous terrain.
According to available details, the road was constructed through difficult geographical conditions within a relatively short period, demonstrating efforts to expand transport infrastructure in remote and previously underserved areas.
The new route has reduced the journey between Astore and Skardu to just a few hours, providing residents, traders and transport operators with a more convenient connection between the two districts.
One of the project's most significant benefits is the restoration of direct road connectivity for eight villages situated in the Phoota Khas Valley of Gultari. Residents of these remote settlements will now have improved access to district headquarters and important administrative, commercial and public service facilities.
Previously, difficult geographical conditions and limited road infrastructure created transportation challenges for communities living in the mountainous areas, particularly those travelling to urban centres for healthcare, education, business and other essential requirements.
The completion of the road is expected to help address these challenges by improving mobility and facilitating access to services that are generally concentrated in major towns and district headquarters.
Beyond improving passenger transportation, the Shagma Manthokha road is also expected to contribute to the economic development of the surrounding communities by creating more convenient transportation opportunities for agricultural producers, livestock owners and local traders.
Agriculture and livestock farming remain important sources of livelihood for many households in Gilgit-Baltistan's rural and mountainous settlements. Improved road connectivity can help farmers and livestock owners transport their products to markets more efficiently, potentially reducing logistical difficulties and improving commercial opportunities.
The enhanced transportation link is also expected to facilitate the movement of essential commodities and other goods between Astore, Skardu and surrounding communities, strengthening economic interaction among previously less-connected settlements.
For local businesses and small-scale traders, improved access to district markets could provide opportunities to expand commercial activities, establish stronger supply connections and reach a broader customer base.
The project's completion is particularly important for remote communities where inadequate transportation infrastructure has historically restricted economic opportunities and complicated access to basic public services.
Residents of the area have welcomed the development, expressing optimism that the new road will make everyday travel more convenient and contribute to improved economic conditions.
The road is expected to provide benefits beyond reduced journey times, including better access to healthcare facilities, educational institutions, government offices and commercial centres.
Improved connectivity may also facilitate the transportation of construction materials and other supplies required for residential construction, community facilities and small-scale infrastructure development in settlements along the route.
The completion of the 66 kilometre road reflects broader efforts to strengthen transportation networks in Gilgit Baltistan, where difficult topography, scattered settlements and considerable distances between population centres continue to present significant infrastructure development challenges.
Road infrastructure plays a particularly important role in the region because reliable transportation links are essential for connecting remote villages with economic centres and ensuring that residents can access public services and commercial opportunities.
By establishing a more direct connection between Astore and Skardu and restoring accessibility for eight villages in the Phoota Khas Valley, the Shagma-Manthokha road represents an important step towards improving regional mobility and supporting socioeconomic development in Gilgit Baltistan.

Gilgit | ReNews Pakistan
The Pakistan Army has completed the construction of a 66 kilometre road connecting Shagma in Astore district with Manthokha in Skardu district, marking a significant development in efforts to improve road infrastructure, strengthen regional connectivity and facilitate economic activity in the mountainous region of Gilgit Baltistan.
The newly completed Shagma Manthokha road provides an alternative transportation link between Astore and Skardu, considerably reducing travel time and improving accessibility for communities that have long faced difficulties travelling through the region's challenging mountainous terrain.
According to available details, the road was constructed through difficult geographical conditions within a relatively short period, demonstrating efforts to expand transport infrastructure in remote and previously underserved areas.
The new route has reduced the journey between Astore and Skardu to just a few hours, providing residents, traders and transport operators with a more convenient connection between the two districts.
One of the project's most significant benefits is the restoration of direct road connectivity for eight villages situated in the Phoota Khas Valley of Gultari. Residents of these remote settlements will now have improved access to district headquarters and important administrative, commercial and public service facilities.
Previously, difficult geographical conditions and limited road infrastructure created transportation challenges for communities living in the mountainous areas, particularly those travelling to urban centres for healthcare, education, business and other essential requirements.
The completion of the road is expected to help address these challenges by improving mobility and facilitating access to services that are generally concentrated in major towns and district headquarters.
Beyond improving passenger transportation, the Shagma Manthokha road is also expected to contribute to the economic development of the surrounding communities by creating more convenient transportation opportunities for agricultural producers, livestock owners and local traders.
Agriculture and livestock farming remain important sources of livelihood for many households in Gilgit-Baltistan's rural and mountainous settlements. Improved road connectivity can help farmers and livestock owners transport their products to markets more efficiently, potentially reducing logistical difficulties and improving commercial opportunities.
The enhanced transportation link is also expected to facilitate the movement of essential commodities and other goods between Astore, Skardu and surrounding communities, strengthening economic interaction among previously less-connected settlements.
For local businesses and small-scale traders, improved access to district markets could provide opportunities to expand commercial activities, establish stronger supply connections and reach a broader customer base.
The project's completion is particularly important for remote communities where inadequate transportation infrastructure has historically restricted economic opportunities and complicated access to basic public services.
Residents of the area have welcomed the development, expressing optimism that the new road will make everyday travel more convenient and contribute to improved economic conditions.
The road is expected to provide benefits beyond reduced journey times, including better access to healthcare facilities, educational institutions, government offices and commercial centres.
Improved connectivity may also facilitate the transportation of construction materials and other supplies required for residential construction, community facilities and small-scale infrastructure development in settlements along the route.
The completion of the 66 kilometre road reflects broader efforts to strengthen transportation networks in Gilgit Baltistan, where difficult topography, scattered settlements and considerable distances between population centres continue to present significant infrastructure development challenges.
Road infrastructure plays a particularly important role in the region because reliable transportation links are essential for connecting remote villages with economic centres and ensuring that residents can access public services and commercial opportunities.
By establishing a more direct connection between Astore and Skardu and restoring accessibility for eight villages in the Phoota Khas Valley, the Shagma-Manthokha road represents an important step towards improving regional mobility and supporting socioeconomic development in Gilgit Baltistan.