3 New Reforms in Budget 2025-26 Driving Growth in Pakistan Real Estate
3 new regulations/tax reforms proposed in the Budget 2025-26, covering NOCs, FED, and Advance Tax, became active on July 1st. These changes are proving very positive for Pakistan’s real estate, especially along Karachi’s M-9 motorway (including DHA City Karachi, Bahria Town, Gulmohar City, and Commander City). They simplify property transactions, lower costs, and boost investor confidence. In this blog, we’ll explain these three changes simply, so buyers, sellers, and investors can understand all their benefits.
In summary
| Reform | What is It? | What’s in it for me? |
|---|---|---|
| 1. No More FBR NOC | No need for a tax clearance certificate from FBR for many property sales. | Easier Process: Removes a common delay/hurdle. |
| 2. FED Abolished | Federal Excise Duty (a past tax) on property is gone. | Lower Costs: Reduces the total amount you pay for a property. |
| 3. Simplified Advance Tax | Buyer’s advance tax rate cut from 3% to 1.5%. | Cheaper Buying: Makes purchasing property more affordable for you. |
1. No More FBR No Objection Certificate (NOC) for Many Transactions
The Budget 2025-26 has removed the need for an FBR (Federal Board of Revenue) No Objection Certificate (NOC) for many property transactions, making things much smoother.
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Residential Properties: You no longer need an FBR NOC if the property is officially valued up to PKR 5 crore.
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Commercial Properties: The FBR NOC is also waived for commercial properties officially valued up to PKR 1 crore.
This change is a big help for transactions in DHA City Karachi and specific parts of DHA Phase 8 (up to 666 square yards/gazz), removing a common hurdle for buyers and sellers.
2. No More Federal Excise Duty (FED)
The government has abolished Federal Excise Duty (FED) in the Budget, which will reduce the overall cost associated with property transactions, making investments more attractive and accessible for a wider range of buyers and sellers. This is a significant step towards encouraging more activity in the real estate market.
3. Simplified Advance Tax Structure
The government has lowered advance tax for property buyers from 3% to 1.5%. This makes buying property simpler and more attractive, easing the financial burden on buyers and clearly defining the obligations for sellers. Here’s a quick look at the changes:
What These Changes Mean for Property Pole customers and Investors in general?
These three new tax reforms/regulations for real estate, along with the Malir Expressway finishing by late 2026, could significantly boost the market. This creates a very favorable environment for investors and property owners in DHA City Karachi.
Property Pole anticipates a prosperous year ahead for property transactions in DHA City Karachi, as these changes are expected to increase market liquidity and buyer interest. Any prior confusion surrounding these tax and regulatory matters should now be resolved, paving the way for clearer and more confident investment decisions.
Explore our blog for a detailed breakdown of DHA Karachi vs. DHA City Karachi. We’ve compared them on living standards, amenities, and investment growth to give you the full picture.
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