Islamabad, Mar 4, 2025: The government has completed preparations for the establishment of the Real Estate Regulatory Authority, aiming to tackle tax evasion and unauthorized transactions within the real estate industry.
Under the new framework, violators could face fines of up to Rs. 1 million and prison sentences of up to three years. Individuals conducting business without registration may be subject to penalties ranging from Rs. 50,000 to Rs. 500,000.
Additionally, real estate agents providing misleading or false information could face fines between Rs. 200,000 and Rs. 500,000. Unauthorized property transfers may result in penalties between Rs. 500,000 and Rs. 1 million.
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Whereas failure to submit required documents could lead to fines ranging from Rs. 50,000 to Rs. 200,000.This initiative aligns with the International Monetary Fund (IMF)’s recommendations to enhance tax collection and transparency in Pakistan’s real estate sector.
The global lender has advocated for stricter oversight, integrating these reforms into discussions under the $7 billion loan agreement. High-level negotiations between Pakistan and the IMF formally began today and are expected to continue for the next two weeks.
Following these deliberations, the IMF review team will present its findings to the Executive Board, which will determine the disbursement of the next $1.1 billion installment.Additionally, decisions regarding potential adjustments in electricity pricing are anticipated, with a final verdict likely by the end of March or early April.
By introducing this regulatory authority, the government aims to curb financial irregularities, enhance accountability, and strengthen compliance within the real estate sector, ensuring a more transparent and tax-compliant environment.
