Why Ending the File Culture in the Real Estate Sector Is Inevitable?

Pakistan’s real estate sector has for decades remained a major source of investment, employment and urban development. However, the same sector has also been marred by non-transparent transactions, fake files, unapproved housing schemes and cash-based payments, causing financial losses to millions of citizens.
In this context, the National Accountability Bureau’s announcement of reforms in the real estate sector, including the elimination of the file system and the strengthening of regulatory oversight, is a highly significant development.
Speaking at the Lahore Chamber of Commerce and Industry, NAB Chairman Lieutenant General (Retired) Nazir Ahmed Butt highlighted issues that reflect the core problems of Pakistan’s property market. The biggest among them is the file culture, under which paper-based files have been bought and sold instead of actual land ownership, approved land area and available plots. Several housing schemes sold far more files than their approved land capacity, leaving ordinary citizens running from office to office for years in pursuit of plots, possession or refunds.
NAB is right in saying that future real estate transactions should be routed through banking channels so that every payment has a documented record. Cash transactions not only increase the risk of tax evasion and money laundering but also weaken legal protection for buyers. Once payments are made through banks, buyers, developers and regulators will all have a clear financial record, which can help reduce the chances of fraud.
Similarly, it is essential that housing developers be allowed to sell only as many plots as actually exist within their approved land bank. One of the major causes of real estate fraud in Pakistan has been the sale of files that were not backed by complete land ownership, approved layout plans or clear no-objection certificates from the relevant authorities. If NAB, development authorities and local governments jointly make the approved land area, number of plots, NOCs and layout plans of every scheme available to the public through a digital system, buyers will be able to make safer decisions.
The memorandum of understanding between NAB and the Lahore Chamber is also important because real estate reforms cannot succeed through accountability actions alone. Trust-building among the business community, developers, regulators and citizens is equally necessary.
A one-window mechanism can facilitate investors and developers, but its purpose should not be to relax rules; rather, it should ensure transparency and timely approvals.
NAB’s distribution of Rs462 million among victims of different housing societies and investment schemes is proof that real estate fraud is not merely a paper-based issue but a human tragedy linked to the life savings of thousands of families. However, the return of money is only temporary relief. The permanent solution is to prevent fraud from taking place in the first place.
Citizens must also play a responsible role in regulating the real estate sector. Before investing in any scheme, they should verify the NOC, approved layout plan, land ownership, possession status and the previous track record of the developer. Investing solely on the basis of advertisements, low-priced files or promises of profit can prove highly risky.
If NAB’s proposed reforms are implemented seriously, Pakistan’s real estate market can move away from file culture, false promises and opaque transactions toward a safer, documented and more reliable system. The real test lies not in the announcement but in implementation, because transparency in the real estate sector is essential not only for investors but also for public trust, economic stability and the rule of law.