ISLAMABAD:
The Federal Board of Revenue (FBR) announced the auction of two major Bahria Town assets—the Bahria Icon Tower in Karachi and the Mall of Islamabad—to recover more than Rs26 billion in unpaid tax liabilities, marking a dramatic turn in the fortunes of Pakistan’s largest private real estate developer.
According to a public notice titled “Proclamation of Sale of Immovable Properties of a Tax Defaulter”, published in leading dailies this week, the auction is scheduled for June 19, 2025, under the provisions of the Income Tax Ordinance, 2001 and the Tax Default Act, 2002. Both properties are registered under Bahria Town Private Limited, owned by property tycoon Malik Riaz.
The Bahria Icon Tower, located in Karachi’s Clifton area, is the country’s tallest skyscraper and was long marketed as a symbol of luxury and modernity. Similarly, the Mall of Islamabad is a high-end mixed-use development in the capital’s Blue Area. Their inclusion in the FBR’s auction list reflects Bahria Town’s deepening financial and legal troubles.
This auction notice comes on the heels of an intensifying anti-corruption crackdown. In April 2025, the National Accountability Bureau (NAB) froze more than a dozen bank accounts associated with Bahria Town Karachi and placed a ban on its commercial transactions. Over 1,000 commercial plots were also placed under restriction.
According to NAB investigations, Bahria Town allegedly acquired over 16,000 acres of public land in Karachi’s Malir district in collusion with officials of the Malir Development Authority (MDA). The land—originally meant for public use—was allegedly used to generate billions in unregulated and illicit profits, well beyond its legally allotted boundaries.
Prominent individuals named in NAB’s investigative documents include Malik Riaz, his son Ahmed Ali Riaz, and several close associates. The individuals face allegations ranging from criminal breach of trust and land fraud to public sector collusion and money laundering.
Adding to the company’s woes, NAB has warned investors against Bahria Town’s real estate marketing operations in the UAE, citing the ongoing probe. The watchdog is also reportedly in contact with Gulf authorities to secure Malik Riaz’s extradition, particularly in connection to the Al-Qadir Trust case—a separate high-profile investigation involving asset recovery and alleged misuse of political office.
Malik Riaz has publicly dismissed the charges as “politically motivated”, accusing NAB of blackmail and character assassination. In a statement released last month, he maintained that his firm has complied with all relevant legal obligations and accused authorities of undermining investor confidence.
Nonetheless, with its flagship properties now heading to the auction block, Bahria Town’s long-dominant position in Pakistan’s real estate market appears increasingly tenuous. The enforcement actions signal one of the most aggressive state-led accountability drives against a private-sector titan in recent memory.
