Sindh Withdraws Ban on Using Residential Land for Commercial Use

The Sindh Master Plan Authority has lifted its ban on converting residential land into commercial use, signaling a significant shift in Karachi's ongoing land-use conflict. While this does not automatically permit commercialization, any alteration in land use will still need to adhere to existing laws, master plans, and approval from relevant authorities.

This decision aligns with the Federal Constitutional Court's May 2026 directive. The move effectively reverses the 2019 Sindh Building Control Authority order that halted land-use changes since the Supreme Court's rulings in 2018 and 2019. The court had previously lifted the ban on transforming residential plots into commercial and recreational spaces, providing relief to builders and developers.

The Federal Constitutional Court's ruling explicitly stated that amenity plots like parks, hospitals, schools, mosques, playgrounds, and graveyards cannot be converted for commercial or residential use. During the hearing, Justice Aamer Farooq confirmed that the court would not interfere with the operations of entities such as the Sindh Building Control Authority.

He also highlighted that affected parties still retained the right to challenge High Court decisions. The court emphasized that its powers to act on its own initiative were no longer applicable, stating that laws were already in place to handle violations of building regulations. The Sindh Master Plan Authority's new notification formally implements the court's May 12, 2026 order, withdrawing the earlier SBCA notification from January 2019.

Senior Director Shakeel Siddiqui, whose signature is on the notification, announced that the revised land-use regulations would take effect immediately. The regulation of residential and amenity plots has been a contentious issue in Karachi for years, particularly concerning their conversion into commercial properties and the expansion of commercial activity into residential neighborhoods.

This issue gained fresh prominence following the Supreme Court's orders of December 2018 and January 2019, which resulted in limitations on land-use modifications. These restrictions had a substantial impact on property owners, developers, and businesses seeking approval for commercial use or the conversion of residential plots.

With the latest court order and the withdrawal of the previous notification, Karachi's land-use framework has entered a new phase.