Sindh Real Estate News and Land Insights

Karachi | ReNews Pakistan

Land disputes involving nearly 100 cooperative housing societies in Karachi concern properties reportedly valued at approximately Rs 1 trillion, according to a newspaper report citing the Sindh Cooperatives Department. The report alleges that administrative irregularities and violations of restrictions on property transactions have exposed several societies to litigation, investigations and uncertainty for members. The societies reportedly include nine operating under government administration. Alleged violations involve plot allotments, transfers, ownership changes, development work and other transactions undertaken despite restrictions imposed in 2017. The report says these actions have contributed to disputes over valuable land and raised questions about oversight of administrators appointed to manage society affairs. According to the report, the provincial cooperatives secretary took notice of the alleged breaches and issued a letter reiterating the restrictions. The communication reportedly warned government administrators and relevant officials against exceeding their authority or undertaking activities prohibited under the existing framework. The report refers to the Sindh Cooperative Housing Authority Ordinance, 1982, and departmental instructions governing administrators’ responsibilities. It states that administrators appointed to societies should focus on authorised administrative functions, including verification of members, scrutiny of records and arrangements for elections, rather than exercising unrestricted powers over land and financial matters. The department’s instructions, as reproduced in the report, prohibit administrators from allotting or transferring plots, changing ownership, approving subdivisions or amalgamations, and allowing commercial use of society property. Restrictions also reportedly cover development expenditure, new appointments and the appointment of legal advisers without the required authorisation. Financial controls form another part of the instructions. Societies are reportedly required to operate bank accounts through joint signatures, while payments exceeding Rs 500 must be made through crossed cheques. Expenditure above Rs 25,000, except employees’ salaries, requires prior approval from the competent authority, according to the report. Administrators must also submit monthly statements detailing their societies’ income and expenditure. The clipping presents these requirements as safeguards intended to improve transparency, protect members’ interests and prevent unauthorised financial decisions. However, it alleges that violations continued after the restrictions were introduced in 2017. Among the societies named in the report are government employees’ housing schemes and other cooperative residential societies across Karachi. Some have reportedly held elections and handed management to elected representatives, while others remain under government administration. The report alleges that no substantial action had been taken against administrators over the violations it describes. The provincial cooperatives secretary reportedly said he had recently assumed charge and would respond after examining the matter. The clipping does not provide detailed responses from the individual administrators or societies named, nor does it establish the outcome of the reported cases and investigations. For society members and prospective purchasers, the central concern is whether disputed transactions were properly authorised and supported by verified records. The reported Rs 1 trillion figure represents an estimate of the value of land involved in disputes; it should not be interpreted as an established financial loss. The allegations and valuation remain attributed to the newspaper report, pending examination of the underlying departmental correspondence, society records and any relevant judicial findings.

Karachi | ReNews Pakistan

The State Bank of Pakistan (SBP) has revised investment regulations for banks and development finance institutions (DFIs), introducing updated limits on investments in companies, startups, mutual funds, Real Estate Investment Trusts (REITs) and private equity funds.

According to a circular issued on October 23, 2026, the central bank has amended Regulation R 6 of the Prudential Regulations for Corporate and Commercial Banking to regulate equity investments and strengthen financial risk management.

Under the revised framework, the aggregate investment of a bank or DFI in the shares of a single company must not exceed the lower of 5% of its Tier-I capital or 10% of the investee company's paid-up shares.

The SBP has also specified investment limits for startups, including financial technology companies. Banks and DFIs may invest up to Rs 500 million or 5% of their Tier-I capital in a single startup, whichever is lower.

Investment ceilings have also been specified for mutual funds, Real Estate Investment Trusts and private equity funds. Under the revised rules, investment in any single fund must remain within the lower of 5% of the financial institution's Tier-I capital or 20% of the fund's total units.

The revised limits are also relevant to Pakistan's real estate investment sector, particularly REITs, which provide a regulated investment structure for property-related assets and projects.

The new framework could influence how banks allocate capital to real estate investment vehicles and other investment funds, depending on their available capital and existing investment exposure.

The central bank has further directed banks and DFIs to maintain formally approved policies governing equity investment decisions, supported by internal evaluation procedures.

These assessments must take into account the institution's financial position, overall investment portfolio, risk appetite, expected returns, professional expertise and business strategy, including an appropriate exit strategy.

Under the revised regulations, strategic investments and investments in mutual funds and private equity funds will also be included when calculating applicable aggregate investment limits.

However, units of the National Investment Trust (NIT) will remain excluded from these limits until its privatisation.

The SBP has specified that Tier-I capital calculations will be based on the preceding half-yearly reviewed or annual audited financial statements of the concerned bank or development finance institution.

The regulatory changes establish investment ceilings while requiring financial institutions to assess potential risks and expected returns before making equity investment decisions.

The central bank has clarified that all other existing instructions relating to the subject will remain unchanged.