Islamabad | ReNews Pakistan

Pakistan's construction sector has recorded an upward revision in its annual growth estimate, with the National Accounts Committee (NAC) increasing the sector's growth rate for fiscal year 2025-26 to 6.30 percent from the previously estimated 5.73 percent.

The revised figures indicate stronger construction activity during the financial year, primarily supported by increased government expenditure on public-sector construction and infrastructure development projects.

According to the Pakistan Bureau of Statistics (PBS), the revised estimates were approved during the 118th meeting of the National Accounts Committee, held in Islamabad on October 19, 2026.

The committee reviewed and approved updated annual and quarterly national accounts estimates for the financial year ending June 2026.

The revision represents an increase of 0.57 percentage points in the construction sector's estimated annual growth rate, highlighting improved performance despite a modest downward adjustment in the country's overall economic growth.

The NAC revised Pakistan's GDP growth estimate for FY2025-26 downward to 3.65 percent from the earlier projection of 3.70 percent.

The overall industrial sector's annual growth estimate was also reduced to 3.34 percent from the previously reported 3.51 percent, reflecting uneven performance across different industries.

Despite these developments, construction remained among the industrial activities recording positive growth.

During the fourth quarter of FY2025 26, covering April to June 2026, construction expanded by 3.52 percent compared with the corresponding period of the previous financial year.

According to the revised national accounts, the improvement was supported by increased public-sector infrastructure spending and a 1.9 percent rise in cement production during the quarter.

In contrast, the broader industrial sector contracted by 4.70 percent during the same period, while overall GDP expanded by 2.00 percent.

The figures suggest that construction maintained positive momentum even as several other industrial activities experienced weaker performance.

Pakistan's construction industry plays a significant role in supporting economic activity across several interconnected sectors, including cement, steel, building materials, transportation and construction related services.

Higher spending on public infrastructure projects can support demand for construction materials and associated services while potentially generating employment opportunities.

The upward revision is also relevant to Pakistan's real estate and housing markets, although stronger construction output does not necessarily indicate an equivalent rise in residential plot prices or property resale values.

Public infrastructure development, private residential construction, housing society development and secondary-market property transactions represent different but interconnected segments of the broader construction and real estate economy.

Property values remain dependent on location, infrastructure availability, legal and regulatory conditions, development progress, market supply and prevailing buyer demand.

The latest national accounts therefore provide an indication of stronger overall construction activity during FY2025 26 rather than direct evidence of rising property prices across Pakistan.

While the revised construction growth estimate reflects the contribution of increased public sector expenditure, further market specific data would be required to assess how this improvement has affected private housing development, residential transactions and investment activity in individual property markets.

Lahore | ReNews Pakistan

The Punjab government has introduced significant changes to its stamp duty system, exempting gift deeds between specified close relatives and reducing the duty on other gift deeds from two percent to one percent.

The changes have been introduced through the Stamp (Second Amendment) Ordinance, 2026, issued by the Punjab governor to amend the Stamp Act, 1899. The ordinance was published in an extraordinary issue of the Punjab Gazette on October 20, 2026, and took effect immediately.

Under the revised framework, exchanges of immovable properties of equal value will attract a fixed stamp duty of Rs1,000. Government leases have also been exempted from stamp duty, alongside gift deeds between the specified categories of close relatives.

Residential tenancy agreements will be subject to fixed stamp duty ranging from Rs3,000 to Rs25,000, with the applicable amount determined by the annual rent.

The amendments also empower the Board of Revenue to amend and revise land valuation tables. The government has additionally decided to expand the e-stamping system.

The measures are intended to modernise stamp duty collection, address legal ambiguities and improve the administrative procedures governing revenue collection.

Islamabad | ReNews Pakistan

Federal Minister for Railways Muhammad Hanif Abbasi has told the National Assembly that the incumbent government has reclaimed 200,000 acres of railway land and pledged to recover all remaining railway land occupied by public and private entities.

Responding to questions from Sahibzada Sibghatullah, Nisar Ahmad Jatt, Pir Fazal Shah and Syed Rafiullah Shah during Question Hour, the minister outlined measures concerning the recovery of railway land and improvements to rail infrastructure.

Abbasi said work on the railway line from Karachi to Rohri would begin next year with support from the Asian Development Bank. He said 480 kilometres of new railway track would be laid at a cost of $2.5 billion.

The minister said the Karachi–Rohri section forms part of the Main Line-1 (ML-1) project, while discussions are continuing on laying the railway line from Rohri to Multan.

Karachi | ReNews Pakistan

The Sindh cabinet has approved the negotiated financing and implementation package for the $150 million Sindh Property Revenue Enhancement Programme (Sindh-PREP), advancing a major initiative to modernise urban property taxation and strengthen the financial management of local governments.

The programme seeks to improve the accuracy of urban property records, strengthen tax administration, increase revenue collection and develop more effective financial management systems for municipal institutions across the province.

The decision was taken during a provincial cabinet meeting chaired by Sindh Chief Minister Syed Murad Ali Shah on October 20, 2026.

According to the approved framework, one of the programme's principal objectives is to increase annual Urban Immovable Property Tax (UIPT) collection across Karachi's 25 Town Municipal Corporations from the current Rs 2.3 billion to a target of Rs 25.5 billion during implementation.

The proposed increase represents an additional Rs 23.2 billion in annual property tax revenue, equivalent to approximately 11 times the existing collection level.

However, the target is dependent on the successful implementation of administrative reforms, accurate property assessments, broader tax coverage and improved collection efficiency.

Under the proposed financing structure, the World Bank will provide $150 million, comprising $110 million through a Programme-for-Results (PforR) component and $40 million through Investment Project Financing (IPF).

The Programme-for-Results mechanism links financing to the achievement and verification of specified performance targets, while the investment financing component is intended to support technical systems, institutional development and reform implementation.

The Sindh government will also provide a counterpart contribution equivalent to 20 percent of the Programme-for-Results component.

The cabinet approved the negotiated package covering financing and implementation arrangements, the programme's results framework, performance verification procedures and environmental and social commitments.

Beyond Karachi, the initiative is intended to strengthen property tax administration in other urban areas of Sindh.

The programme includes institutional capacity-building measures for 45 selected local councils and the introduction of an Integrated Financial Management Information System.

Lahore | ReNews Pakistan

The Punjab government has approved a pilot project to transform 120 villages across the province into model settlements, focusing on improved rural infrastructure, sanitation and basic public services.

The initiative aims to upgrade existing villages through the development of sewerage systems, drainage networks and paved streets, while establishing local administrative mechanisms to oversee implementation and ensure community participation.

Punjab Chief Minister Maryam Nawaz Sharif approved the project during a special meeting held in Lahore on October 20, 2026, where officials presented a comprehensive briefing on the proposed model village development programme.

The provincial government also decided to introduce the Khushhal Dehat Act 2026, a proposed legislative framework intended to support rural development and improve the management of village level infrastructure projects.

Under the initial phase, 120 villages will be selected for the pilot programme, with development activities to be coordinated through specially constituted village committees.

The chief minister directed the relevant authorities to establish these committees promptly and submit a comprehensive implementation plan.

According to the approved administrative arrangements, each village committee will comprise eight members, including four public representatives and four government representatives.

The relevant Assistant Commissioner will head each committee, while the Deputy Commissioner will supervise all village committees and development projects within the district.

The committees will include a local school headteacher, Union Council Secretary and a doctor from a Basic Health Unit or Maryam Nawaz Health Clinic, alongside other relevant representatives.

These committees are expected to help identify community infrastructure requirements, coordinate development activities and monitor the quality of public works.

Islamabad | ReNews Pakistan

The Association of Builders and Developers of Pakistan (ABAD) has appointed Sultan Gohar, Chief Executive Officer of Lake City Holdings, as Chairman of its North Region for a two year term.

The appointment was formally approved by ABAD's Executive Committee, which expressed confidence that Gohar's experience in real estate development would help advance the interests of builders and developers across the region.

According to reports published on October 19 and 20, 2026, the association nominated Gohar to lead its northern regional operations and contribute to efforts aimed at strengthening Pakistan's construction and property development industries.

ABAD welcomed the appointment and expressed the expectation that Gohar's professional background and leadership experience would support the association's efforts to address industry challenges and promote sustainable development.

Gohar is associated with Lake City Holdings, a prominent real estate development business involved in residential and community development projects in Pakistan.

His experience includes leadership and management responsibilities in the property development sector, providing him with practical exposure to challenges faced by private developers.

The appointment also marks his return to a position he has previously held within the association.

According to ABAD's official records of former regional chairmen, Gohar served as Chairman of the North Region during the 2022 23 and 2023 24 terms.

His latest appointment comes at a time when Pakistan's construction and real estate sectors continue to face challenges related to building material costs, taxation, regulatory approvals and access to development financing.

These issues remain important for private developers, particularly those undertaking residential and commercial construction projects that require substantial investment and coordination with regulatory authorities.

ABAD is a national representative organisation of builders and developers working to support private-sector construction activities and promote the development of Pakistan's housing industry.

Islamabad | ReNews Pakistan

The federal government has announced plans to establish eight international-standard museums on approximately 150 acres of land in Islamabad, creating a major cultural and heritage complex dedicated to Pakistan's history, national identity, Islamic heritage and armed forces.

Federal Interior Minister Mohsin Naqvi announced the initiative during visits to Malpur and Bara Kahu on October 21, 2026, where he inspected government owned land affected by alleged illegal occupation and reviewed the proposed museum development.

According to the minister, the planned complex will include a National Heritage Museum, History Museum, Armed Forces Museum and Islamic Museum, alongside four additional facilities representing different aspects of Pakistan's cultural, historical and national heritage.

Naqvi said land measuring approximately 150 acres had been identified near Malpur for the proposed development.

The project is intended to establish a major cultural destination in the federal capital, providing facilities for the preservation, documentation and public exhibition of Pakistan's historical and cultural heritage.

The proposed museums are also expected to offer educational and research opportunities for students, historians and visitors while supporting the development of cultural tourism in Islamabad.

During the inspection, the interior minister also raised concerns about the alleged illegal occupation of 108 kanals of government land in Ahmadpur, where construction activities had already taken place.

He directed the relevant authorities to take effective measures to recover government-owned property occupied without legal authorisation.

Naqvi expressed concern that valuable public land and residential apartments in Islamabad had allegedly remained under illegal occupation for decades without adequate accountability.

He said some individuals had constructed farmhouses and other structures on government land and continued occupying such properties for periods extending to 20 or 25 years.

The minister emphasised that action against illegal occupation should also address the role of public officials who failed to prevent encroachments or allegedly facilitated unauthorised construction.

He called for accountability of officials associated with the Capital Development Authority (CDA) who may have neglected their responsibilities in protecting public property.

According to Naqvi, the government intends to pursue coordinated measures involving the Islamabad administration, CDA and other relevant stakeholders to recover state-owned land and make it available for public development projects.

The proposed museum complex also represents a development in the government's earlier plans to establish a National Museum of Pakistan in the federal capital.

The national museum had originally been proposed for Shakarparian, where approximately eight acres were required for the project.

However, during a briefing to the Senate Standing Committee on National Heritage and Culture earlier in October, officials indicated that the museum would instead form part of a larger cultural complex near Bara Kahu.

Peshawar | ReNews Pakistan

Transparency International Pakistan (TIP) has called on the World Bank to investigate alleged procurement irregularities involving the electromechanical contract for the 88 megawatt Gabral Kalam Hydropower Project in Swat district, Khyber Pakhtunkhwa.

The complaint raises concerns about the transparency and compliance of the prequalification and contract approval procedures conducted by the Pakhtunkhwa Energy Development Organization (PEDO), the provincial agency responsible for implementing the project.

In a formal letter addressed to World Bank Country Director for Pakistan Bolormaa Amgaabazar, Transparency International Pakistan alleged that the procurement process involved violations of international bidding requirements and that important financial and legal eligibility considerations had not been adequately addressed.

According to the complaint, the evaluation and prequalification procedures raised questions over whether the participating bidders met the applicable procurement standards.

The watchdog specifically questioned the eligibility of an Argentine company because of its state-owned status, arguing that the ownership structure required examination under the World Bank's procurement framework.

PEDO, however, rejected the interpretation underlying the objection, maintaining that the relevant restriction does not apply to foreign government-owned enterprises.

According to the provincial energy organisation's position, foreign state ownership alone should not automatically disqualify a company from participating in the procurement process.

The disagreement centres on the interpretation of procurement eligibility rules, the legal status of the participating company and compliance with the financial and technical requirements established for the contract.