Real estate sector in Pakistan faces questions over black money, pricing gaps
Kamran Khan says much of Pakistan’s real estate, from plots and files to luxury apartments and housing schemes, still operates outside the tax net
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Pakistan’s real estate sector has emerged as one of the country’s largest channels for undocumented wealth, with trillions of rupees circulating outside the formal economy through cash-based property transactions, speculative investments and unregulated market practices.
Kamran Khan said in the latest episode of On My Radar that the property market has become a preferred destination for black money due to weak documentation, undervalued official rates and a widening gap between government-assessed prices and actual market valuations. From residential plots and property files to luxury apartments and private housing schemes, large segments of the sector continue to operate beyond the tax net.
The episode also explores Pakistan’s three-tier property pricing system, concerns raised by the IMF over market transparency, and mounting pressure on tax authorities to document the sector. It further highlights how speculative real estate investment has contributed to rising housing costs, pushing the middle class further out of the market while diverting capital away from productive industries and broader economic growth.
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