NAB Plans to End Pakistan’s Property File System

Pakistan’s real estate sector is heading toward a major regulatory shake-up after the National Accountability Bureau said it plans to abolish the long-running property file system within two months. The announcement was made by NAB Chairman Lt Gen retired Nazir Ahmed Butt during an informal media briefing on April 30, bringing renewed attention to one of the country’s most controversial investment practices.

The proposed reform is aimed at ending the sale and circulation of unverified property files, a system that has often allowed buyers to pay for plots that may not be legally approved, physically available or properly documented. For decades, file-based trading has played a central role in Pakistan’s housing market, especially in private schemes where speculative buying and delayed possession have frequently created disputes.

According to the NAB chief, a comprehensive reform package will be placed before the federal cabinet for approval. Once implemented, the new framework is expected to shift legal and financial responsibility more clearly onto registered developers, forcing them to meet stricter obligations before selling property to citizens.

The proposed structure would create a regulated three-party model involving the buyer, the developer and the state. Under the plan, payments would be routed through formal banking channels, while cash-based transactions, commonly associated with undocumented activity and tax avoidance, are expected to be phased out.

Officials say the reform directly targets several long-standing abuses in the housing market, including fictitious plots, multiple bookings of the same property and the sale of files without clear land ownership. These practices have affected thousands of ordinary investors, many of whom put life savings into schemes that later became delayed, disputed or impossible to develop.

The NAB chairman also said the bureau had recovered Rs1.124 trillion in cash and assets worth nearly $30 billion over the past two and a half years. He added that recovered amounts had been transferred to the federal consolidated fund and were not retained by the accountability watchdog.

The announcement comes at a time when Pakistan’s real estate market is under pressure from high prices, documentation requirements and tighter scrutiny of informal capital flows. Housing remains a major investment outlet for families, overseas Pakistanis and businesses, but weak regulation has often made the sector vulnerable to fraud, speculation and black-money parking.

For developers, the change could bring both challenges and opportunities. Genuine builders may benefit from improved investor confidence, while weaker or non-compliant operators could face difficulty selling projects without clear approvals, bank-based payments and formal accountability for delivery.

For citizens, the impact could be significant if the government follows through with enforcement. A transparent system may reduce the risk of property fraud, but authorities will need to ensure that reforms do not create fresh delays, excessive paperwork or confusion for genuine buyers seeking affordable homes.

The next step will be the federal cabinet’s review of the reform package. If approved and implemented within the announced timeline, the move could mark the beginning of the end for Pakistan’s informal property file culture and push the real estate sector toward a more documented, regulated and accountable model.