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.

Karachi | ReNews Pakistan

Pakistan Railways has initiated fresh measures to lease valuable commercial properties across Karachi, Hyderabad and Rawalpindi divisions as part of efforts to generate revenue from its land holdings and attract private investment in commercial real estate development.

According to auction notices issued by the railway authorities, properties comprising warehouses, existing and newly constructed shops, parking areas, marriage halls, marquees and other commercial facilities in Karachi Division are being offered for leasing through open public auctions.

The properties reportedly include warehouses at prime business locations in Karachi, particularly around I.I. Chundrigar Road, along with railway assets in Hyderabad and Tando Jam.

Under the proposed arrangements, certain properties are intended to be offered on 10-year leases.

Pakistan Railways published an official notice for the open auction of properties in Karachi Division on October 15, 2026, listing November 7, 2026, as the relevant closing date.

In a separate initiative, Pakistan Railways has proposed leasing 12 sites in Rawalpindi Division to private-sector investors and developers for the establishment of commercial projects.

The arrangements are being pursued through the Railway Estate Development and Marketing Company (REDAMCO), a subsidiary associated with the commercial management and development of railway properties.

According to the available advertisement, the Rawalpindi properties are being offered under a public-private partnership model for an initial lease period of 21 years, extendable by another 21 years, potentially bringing the total tenure to 42 years.

The proposed developments may include shopping plazas, commercial markets, corporate offices, retail outlets and factory outlets, depending on the approved land use and individual development arrangements.

The advertised conditions also provide for an annual rental escalation of eight percent on a compound basis and a 24-month mobilisation period following possession.

Construction activities would be required to comply with applicable local building regulations and other relevant approvals.

The leasing initiative forms part of Pakistan Railways' broader efforts to improve the commercial utilisation of its land assets and develop recurring revenue streams.

For private developers, construction companies and commercial investors, the proposed arrangements could provide opportunities to establish retail, office and mixed-use projects on strategically located railway land.

However, the publication of auction notices does not constitute the final award of leases. Successful bidders, contractual obligations, lease values and project implementation schedules will become clear after the relevant procurement and approval processes have been completed.

The latest measures follow an earlier successful auction of 125 commercial warehouses at Badami Bagh in Lahore.

According to an official government announcement issued on October 1, the annual lease revenue from those warehouses increased from Rs 72.2 million to Rs 331.08 million following the auction.

The department is also expected to receive an upfront security deposit of Rs 277.72 million under the revised arrangements.

The new leasing initiatives in Karachi, Hyderabad and Rawalpindi indicate a continued emphasis on commercial property development, asset monetisation and private-sector participation in the utilisation of Pakistan Railways' land holdings.

The eventual economic benefits will depend on competitive bidding, transparent agreements, investment commitments and the timely execution of approved commercial projects.