The Sindh Master Plan Authority has withdrawn a notification that imposed an immediate ban on converting residential land for commercial use, marking a major development in Karachi’s long-running land-use dispute.
Follow Times of Karachi on Google News and add as a preferred Source on Google
The withdrawal was made in compliance with a May 12, 2026 order of the Federal Constitutional Court (FCC), which recalled earlier Supreme Court orders from 2018 and 2019 that had formed the basis of restrictions on changes in land use.
However, the withdrawal does not automatically allow residential properties to be commercialised. Officials clarified that any change of land use will remain subject to applicable laws, master plans and approval from the relevant competent authorities.
The authority’s latest notification formally withdraws the Sindh Building Control Authority (SBCA) notification dated January 24, 2019, which had imposed an immediate ban on conversion or change of land use.
Also Read: Karachi residential plot commercialization order withdrawn, SBCA tells SHC
The notification stated that the earlier SBCA directive was being withdrawn following the FCC’s May 12 order, which recalled the Supreme Court’s orders dated December 21, 2018 and January 22, 2019, along with directions and actions taken pursuant to those orders.
The FCC, while disposing of the case, overturned the earlier restriction that had prevented the conversion of residential plots into commercial properties in Karachi.
A two-member bench headed by Justice Aamer Farooq clarified that amenity plots cannot be converted for commercial or residential purposes.
The ruling covers plots designated for public amenities, including parks, hospitals, schools, mosques, playgrounds and graveyards. Such plots will continue to be reserved for their designated public purposes.
Also Read: SBCA legalize commercial activities on residential plots in Karachi
The court also observed that regulatory institutions such as the Sindh Building Control Authority should be allowed to perform their functions under the existing legal framework.
Justice Aamer further noted that affected parties have the right to challenge High Court decisions through appeals and emphasised that existing laws provide mechanisms for dealing with violations of building regulations.
The latest notification effectively opens a new regulatory phase for Karachi’s property and real estate sector after years of restrictions on land-use conversion.
Property owners, builders and developers had faced significant uncertainty since the Supreme Court orders of 2018 and 2019 resulted in restrictions on converting residential plots for commercial purposes.
Also Read: Karachi: Lyari Town calls for urgent action on open manhole
The FCC’s May 2026 decision has now brought the issue back under the existing legal and regulatory framework.
However, residential-to-commercial conversion is not automatically permitted simply because the 2019 notification has been withdrawn. Applicants will still need to comply with applicable land-use regulations, master plans and approval procedures.
Senior Director of the Sindh Master Plan Authority Shakeel Siddiqui, who signed the notification, said the new land-use regime would become applicable immediately following the latest regulatory move.
The development is expected to have significant implications for Karachi’s property owners, developers and businesses seeking changes in land use, although the extent of commercialisation will depend on the approvals granted under the applicable regulations.
Follow the Times of Karachi channel on WhatsApp
Karachi’s residential and amenity land-use regulations have remained controversial for years, particularly over the expansion of commercial activity into residential neighbourhoods.
The restrictions introduced following the Supreme Court’s 2018 and 2019 orders affected property owners and developers seeking permission to convert residential properties for commercial purposes.
With the FCC recalling those orders and the Sindh Master Plan Authority now withdrawing the 2019 notification, Karachi has entered a new phase in its land-use regulation.
The key distinction, however, remains that withdrawal of the ban is not the same as blanket approval for commercialisation. Each proposed change of land use must still comply with the relevant laws and receive approval from the competent authorities.
