The Sindh government has lifted restrictions on the commercial use of residential plots, introducing a significant change to property and land-use regulations in Karachi. The Sindh Master Plan Authority has officially withdrawn the earlier notification that prohibited the conversion of residential properties for commercial purposes.
The decision follows the Federal Constitutional Court (FCC) recalling previous court orders concerning land-use conversion in May 2026. In response, the Sindh Master Plan Authority cancelled the notification issued by the Sindh Building Control Authority (SBCA) in January 2019, with the change taking immediate effect.
The earlier ban was introduced after Supreme Court orders issued in December 2018 and January 2019 directed authorities to stop the conversion of residential properties for commercial activities. The SBCA subsequently imposed restrictions on such conversions in the affected areas.
However, the lifting of the ban does not allow automatic commercial conversion of all residential plots. Property owners must continue to comply with applicable laws, approved master plans, building regulations and other requirements established by the relevant authorities. Necessary approvals and permissions must be secured before changing a property's approved land use.
The latest decision also retains protection for amenity plots. Land designated for public facilities such as parks, playgrounds, hospitals, schools, mosques and graveyards cannot be converted for residential or commercial use. The restriction is intended to preserve land allocated for essential public services.
The withdrawal of the commercial-use restriction could have a significant impact on Karachi's real estate market, particularly for property owners, developers and businesses seeking legally approved changes in land use. Eligible owners may now pursue commercial conversion through the applicable regulatory and approval process.
