FBR’s Rs36 Billion Legal Victory Over Bahria Town
- Abeera Marium Siddiqui
- June 4, 2025
- 3:46 pm
- 38
- Business
In a major development in FBR tax recovery, the Federal Board of Revenue (FBR) has successfully reclaimed Rs36.14 billion through court rulings, including a landmark win against real estate giant Bahria Town (Private) Limited. These victories mark a clear turning point in Pakistan’s efforts to enforce tax laws and hold powerful entities accountable.
The Islamabad High Court (IHC) recently approved FBR’s claim to recover over Rs26.4 billion from Bahria Town. This case had remained stuck in litigation for more than two years. Now, with the court’s decision, FBR is finally set to collect the amount.
Along with the Bahria Town case, the FBR secured favorable rulings in two other corporate tax disputes. These rulings add another Rs9.7 billion to the total recovery amount. Together, these court wins have unlocked Rs36.14 billion for the national treasury.
Prime Minister Shehbaz Sharif had earlier instructed the FBR to adopt a more aggressive legal approach. He stressed the importance of resolving high-value cases that had blocked revenue collection for years. The recent wins clearly reflect the success of this strategy.
To enforce the court’s decision, the FBR announced the auction of two key Bahria Town assets. These include the iconic Bahria Icon Tower in Karachi and the upscale Mall of Islamabad. The auction is scheduled for June 19, 2025, under Pakistan’s tax laws. These properties are among the most valuable assets owned by Bahria Town, a company led by property tycoon Malik Riaz.
The auction announcement follows a wider crackdown on Bahria Town and its associated entities. In April 2025, the National Accountability Bureau (NAB) froze multiple bank accounts linked to the company. Authorities also restricted more than 1,000 commercial plots in Bahria Town Karachi.
NAB has accused Bahria Town of illegally acquiring 16,000 acres of land in Karachi’s Malir district. Investigators claim the land was meant for public use but was instead exploited for profit. The agency also continues to investigate alleged money laundering and misuse of political connections.
Malik Riaz has denied all allegations. In public statements, he called the charges “politically motivated” and claimed his company has followed all legal requirements.
Despite the denials, the pressure on Bahria Town continues to grow. Authorities are now seeking extradition of Malik Riaz from the UAE in connection with the Al-Qadir Trust case. This separate investigation also involves major asset recovery issues.
The FBR tax recovery from Bahria Town is now seen as a key example of how legal action can strengthen tax enforcement. It shows that even major players in the private sector cannot avoid their obligations. Officials say this breakthrough will encourage compliance in other pending tax cases as well.
With the courts backing its efforts, FBR appears more confident than ever. The agency plans to keep using the legal system to pursue large tax defaulters and improve overall revenue collection. The Bahria Town case, the largest among recent rulings, now stands as a symbol of growing legal and financial accountability in Pakistan.
The FBR tax recovery strategy, guided by the Prime Minister’s instructions, is already showing results. It also boosts trust in Pakistan’s legal institutions and tax framework. More recoveries are expected as similar cases move through the courts.
