ISLAMABAD: Federal Board of Revenue (FBR) has reduced the valuation of immovable properties by 10% to 30% in five major cities, aiming to align official rates with market values and stimulate real estate transactions.
The revised valuations, effective from April 22, apply to Faisalabad, Sialkot, Multan, Bahawalpur and Gujranwala, according to separate notifications issued by the tax authority on Wednesday.
The move follows a similar revision earlier announced for Islamabad, bringing the total number of cities where property valuation has been adjusted downward to six.
In official documents, the FBR issued S.R.O. 650(I)/2026 for Multan, S.R.O. 651(I)/2026 for Faisalabad, S.R.O. 652(I)/2026 for Bahawalpur, S.R.O. 653(I)/2026 for Gujranwala, and S.R.O. 662(I)/2026 for Sialkot, outlining updated valuation tables for immovable properties in these urban centres.
Officials said the revisions were made after assessing prevailing market trends and fair value estimates, which in many cases were lower than previously notified rates. The discrepancy had been cited by stakeholders as a key factor slowing property transactions.
By narrowing the gap between official and market valuations, authorities aim to encourage documentation in the real estate sector and improve tax compliance, while also supporting activity in the construction and housing industries.
Pakistan’s real estate sector has faced subdued growth in recent years due to higher taxes, rising costs and economic uncertainty. Analysts say the reduction in valuation rates could help revive investor confidence and increase transaction volumes in the short term.
The FBR said further adjustments may be considered in other cities based on market conditions and feedback from stakeholders.
