Karachi’s real estate sector has received a major development as the Sindh Master Plan Authority has withdrawn the notification that had stopped the conversion of residential plots for commercial use. The move follows a Federal Constitutional Court decision issued in May 2026 and ends a restriction that had remained in place since January 2019.
The authority withdrew the earlier Sindh Building Control Authority notification with immediate effect. Senior Director Shakeel Siddiqui confirmed that the new land-use system would now apply immediately.
The Federal Constitutional Court had recalled the Supreme Court orders from December 21, 2018 and January 22, 2019, which had formed the basis for the restrictions. The court also restored relevant authorities’ ability to deal with land-use changes under existing laws.
The decision is expected to provide relief to property owners, builders and developers who had faced uncertainty over commercialisation. The Association of Builders and Developers had earlier said the long-running restriction had affected construction activity and investor confidence.
However, the lifting of the ban does not mean residential plots can automatically become commercial properties. Owners must still follow zoning rules, master plans and approval procedures. Parks, schools, hospitals, mosques, playgrounds and graveyards also remain protected from conversion.
