National Real Estate News

The Estate Office has issued notices to 7,973 federal employees who are reported to have fallen behind on rent for government residences, with allotment cancellations planned for those who fail to clear their outstanding dues.

According to a private television report citing available documents, Karachi has the largest number of defaulters, at 5,317. Islamabad follows with 2,169 employees, while Lahore has 404, Peshawar 57 and Quetta 26. The figures place Karachi at about 66.7% of the reported national total. The report’s stated share of 74.26% does not match the city figures and overall total it provides.

Sources said the Estate Office has issued notices as part of efforts to recover unpaid rent. Employees who do not pay their dues may lose their government-house allotments under the proposed action.

The World Bank Group’s current portfolio in Pakistan comprises 47 operations, including one regional project, with total commitments of approximately US$16.1 billion. The Bank says it has provided about US$52 billion in assistance to Pakistan since the country joined the institution in 1950.

The figures were included in the World Bank Group’s October 2026 Pakistan Development Update, which said faster structural reforms could help Pakistan achieve sustained growth and raise incomes by 2050. The report also identified private investment as important to the country’s next phase of growth.

The International Finance Corporation (IFC), the World Bank Group’s private-sector investment arm, has invested and mobilised approximately US$22 billion in Pakistan since 1959. Its projects have supported housing and infrastructure, alongside renewable energy, financial inclusion, agribusiness, manufacturing, healthcare and trade.

As of September 30, 2026, IFC’s committed portfolio in Pakistan stood at US$1.6 billion across 55 projects. This figure is separate from the World Bank’s US$16.1 billion portfolio commitment.

Production at Pakistan’s Reko Diq copper-gold project could be delayed by two years, from 2028 to 2030, as investors assess security conditions in Balochistan and tensions in the Middle East, Dawn reported. The conflict in neighbouring Iran, alongside persistent security challenges in Balochistan, has led investors to revisit the project’s original schedule.

Barrick Mining, the Canadian company operating the project, is expected to resume full-scale development by mid-2027 after completing an internal review, although it has not officially announced a revised construction timeline. Barrick began a formal review in February 2026 and extended its assessment period into early 2027. Speaking at the Mining Forum Americas last month, the company’s chief executive did not set out a new construction schedule, saying improvements in security were needed before Barrick could commit to a full-scale programme. Project activity has slowed, but management has retained all 700 permanent employees and about 2,000 contract workers at the site.

Some third-party service contracts have been allowed to expire, while research, administrative work and community development projects continue, according to the report. Nearly $1 billion has been invested in the project so far. It remains a strategic priority for the company and the government and is considered technically viable, though its development schedule could be affected by external conditions.

Barrick Chairman John L. Thornton is scheduled to visit Pakistan later this month for the Pakistan Minerals Investment Forum 2026 in Islamabad.
Assessments of the potential cost of a delay differ. One estimate puts cost escalation at $8 billion to $10 billion if work resumes within a year, and warns that a further deterioration in security or delays of more than two years could make the project prohibitively expensive. Another assessment estimates the increase at about 10 percent, or roughly $450 million to $900 million. The report said sentiment around the project had improved in recent weeks.

A proposal has also been made for a consortium of local companies to acquire a minority stake. Separately, concerns have been raised that only 30 to 35 percent of the copper-gold output may be processed in Pakistan, with the remainder sent to the operator’s Australian facility, potentially limiting domestic value addition. The project’s estimated capital cost has increased from earlier projections of about $7 billion to approximately $9.1 billion. Phase 1 investment is now estimated at $5.6 billion, up from $4 billion, while Phase 2 is expected to require a further $3.5 billion.
Designed as an open-pit mine and processing operation, Reko Diq is expected to produce copper-gold concentrate.

Initial capacity is planned at 45 million tonnes of ore a year, rising to 90 million tonnes after Phase 2.
The mine was initially planned to operate for 40 years. An updated feasibility study revised its estimated life to 37 years to account for higher throughput, while further exploration and resource development could potentially extend operations to as much as 80 years.
Reko Diq is projected to create 7,500 jobs during peak construction and support about 4,000 permanent positions once operational. Based on long-term commodity-price assumptions, projected free cash flow over 37 years is estimated at $74 billion.

Barrick holds a 50 percent stake in the project. The remaining 50 percent is held by the Balochistan government and three Pakistani state-owned entities: Pakistan Petroleum Limited, Oil and Gas Development Company and Government Holdings Private Limited.

According to an Estate Office report, 7,973 federal employees living in government residences have defaulted on rent. Karachi tops the city-wise list with 5,317 defaulters. The report puts Karachi’s rent-default rate at 74.26%. Media reports say the figures are 2,169 in Islamabad, 404 in Lahore, 57 in Peshawar and 26 in Quetta. Notices have reportedly been issued to employees over non-payment. The Estate Office has warned that allotments may be cancelled if the outstanding dues are not paid. The recovery of rent from government residences was also discussed at a meeting of the Senate Standing Committee on Housing and Works on October 8.

According to sources, the housing secretary told the committee that 8,000 to 10,000 notices had been issued over two months to recover outstanding dues. Work is also under way to digitise the system for recovering future payments.

The briefing did not verify the current list of 7,973 employees separately but provided broader context on efforts to recover rent arrears.

The Capital Development Authority (CDA) has issued notices to several religious seminaries in Islamabad over alleged violations of building-control regulations, warning that the properties could be sealed if their administrations fail to comply with its directions.

According to the notices, construction was carried out without approved building plans. The authority has asked the administrations to submit the required plans within 15 days and remove the identified violations by the deadline.The CDA said the violations include construction on mandatory setbacks and additional structures on rooftops. It also objected to the use of a building for a seminary when it was designated for residential purposes.

The authority warned that non-compliance could lead to the buildings being sealed, financial penalties and cancellation of the properties’ allotments. The action follows a separate CDA notice to the administration of JUI-F chief Maulana Fazlur Rehman’s Islamabad residence over alleged unauthorised construction and encroachments. That notice also gave the administration 15 days to remove structures built on mandatory setbacks and warned that the property could be sealed or the structures demolished.