Sindh govt lifts ban on commercial use of residential plots

Sindh govt lifts ban on commercial employ of residential plots.

Key points

• Imran Ayub Published August 29, 2026 Updated August 29, 2026 08: 19am.
• After which restrictions were imposed on changes in land employ, The matter gained renewed significance after the Supreme Court's orders of December 21, 2018 and January 22, 2019.
• Master Plan Authority withdraws notification freezing land-use changes after SC orders of 2018 and 2019; office-holders say commercialisation 'subject to applicable laws'.
• In the notification, the Sindh Master Plan Authority has now formally spelled out the consequential step taken pursuant to the court's May 12, 2026 order.
• During the hearing, Justice Aamer remarked that the court would not interfere in the functioning of institutions such as the Sindh Building Control Authority (SBCA).

Imran Ayub Published August 29, 2026 Updated August 29, 2026 08: 19am. Join our Whatsapp Channel. Add Dawn as a trusted source.

KARACHI: In a major development that could reshape the city's long-running battle over land employ, the Sindh Master Plan Authority on Friday withdrew the notification that imposed an immediate ban on the conversion of residential land for commercial apply, opening the door to a fresh regulatory chapter for Karachi's property landscape.

As any change of land apply remains subject to applicable laws, master intends and approvals of the competent authorities, nevertheless, office-holders noted the withdrawal of the notification does not amount to an automatic green light for commercialisation.

In practice, the move, created in compliance with the Federal Constitutional Court's (FCC) May 2026 order, effectively removes the 2019 Sindh Building Control Authority notification that had frozen changes in land apply after the Supreme Court's orders of 2018 and 2019.

For context, the FCC in May 2026 had lifted the ban on the conversion of residential plots to commercial and recreational employ in Karachi, providing major relief to builders and developers.

For context, a two-member bench, headed by Justice Aamer Farooq while disposing of the case overturned a previous ruling that prohibited the conversion of residential plots into commercial properties in Karachi.

For context, the bench clarified that amenity plots, including parks, hospitals, schools, mosques, playgrounds, and graveyards, cannot be converted for commercial or residential purposes.

According to He further, the affected parties additionally have the right to file appeals against the High Court decisions. According to Justice Aamer additionally, the court's suo motu powers no longer exist and emphasised that laws are already in place to address violations of building regulations.

Notably, the fresh notification from the Sindh Master Plan Authority marks a significant turn in the city's contentious land-use regime, coming after the FCC recalled the earlier Supreme Court orders that had formed the basis for the citywide restrictions on conversion of land employ.

"With the approval of the Competent Authority and in pursuance of the Order dated 12.05.2026, passed by the Honorable Federal Constitutional Court of Pakistan in C.P.L.A. No. 815-K of 2016, whereby the Orders dated 21.12.2018 and 22.01.2019, passed by the Honorable Supreme Court, together with all directions issued and actions taken pursuant thereto or awaiting implementation, were recalled. Consequently, the notification No. SBCA/PS-CE/2019/01 dated 24.01.2019, issued by the Sindh Building Control Authority in pursuance of the Order dated 22.01.2019, regarding the immediate ban on conversion (change of land employ), is hereby withdrawn with immediate effect, " stated the notification.

"All concerned shall ensure strict compliance with and implementation of the directions contained in the aforesaid Order dated 12.05.2026 of the Honorable Federal Constitutional Court, in letter and spirit."

When contacted senior director of Sindh Master Plan Authority Shakeel Siddiqui, under whose signature the notification was issued, informed Dawn that the fresh regime of land apply would be applicable immediately 12.05.2026 of the Honorable Federal Constitutional Court, in letter and spirit.

"The city's regulation of residential and amenity plots has remained a contentious issue for years, particularly over their conversion for commercial purposes and the expansion of commercial activity into residential areas, " remarked a former official privy to the affairs of land regulation and real estate business in the city.

After which restrictions were imposed on changes in land employ, "The matter gained renewed significance after the Supreme Court's orders of December 21, 2018 and January 22, 2019. The measures had a significant impact on property owners, developers and businesses seeking approval for commercial employ or conversion of residential plots."

In practice, the FCC order of May 12, 2026, recalling the earlier Supreme Court orders and consequential directions, he continued, has brought the long-running legal and regulatory question back into focus. Published in Dawn, August 29th, 2026.

Imran Ayub is a Karachi-based reporter for Dawn with over 25 years of experience in the field. He reports on political parties, crime, telecom, and local administration systems. He can be discovered on X at @MixPatti.

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