Sindh govt lifts ban on commercial use of residential plots
KARACHI: In a major development that could reshape the city’s long-running battle over land use, the Sindh Master Plan Authority on Friday withdrew the notification that imposed an immediate ban on the conversion of residential land for commercial use, opening the door to a fresh regulatory chapter for Karachi’s property landscape. However, officials said the withdrawal of the notification does…
Karachi witnessed a significant shift in the city's land use dynamics as the Sindh Master Plan Authority rescinded the notification that prohibited residential plots from being converted into commercial use. This move, in adherence to the Federal Constitutional Court's (FCC) May 2026 ruling, could potentially transform Karachi's real estate sector.
However, the Sindh Master Plan Authority clarified that the withdrawal of the notification does not automatically permit commercialization of residential land, as it remains subject to existing laws, master plans, and approvals from relevant authorities. The decision follows the FCC's May 12, 2026 order, which overturned the 2019 Sindh Building Control Authority notification freezing changes in land use, resulting from the Supreme Court's orders in 2018 and 2019.
The Federal Constitutional Court's May 2026 order lifted the ban on converting residential plots into commercial and recreational use in Karachi, offering much-needed relief to builders, developers, and property owners. The Sindh Master Plan Authority's decision comes after a two-member bench, headed by Justice Aamer Farooq, dismissed a ruling that prohibited the conversion of residential plots into commercial properties in Karachi.
The court emphasized that certain amenity plots, such as parks, hospitals, schools, mosques, playgrounds, and graveyards, cannot be converted for commercial or residential purposes.
Written by urgent.news from Dawn - Pakistan's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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