Real estate tycoon Malik Riaz on Tuesday called for renewed dialogue and a “dignified solution” as legal and financial pressure mounts on Bahria Town, with the Islamabad High Court (IHC) reserving its verdict on petitions challenging the proposed auction of the company’s assets.
The properties were attached under a plea bargain agreement in the £190 million Al Qadir Trust case, part of broader proceedings led by the National Accountability Bureau (NAB), which has declared Riaz an absconder.
The legal saga dates back to 2019, when the United Kingdom’s National Crime Agency (NCA) reached a £190 million settlement with Riaz’s family. That same year, Pakistan’s Supreme Court accepted Riaz’s offer of Rs460 billion to settle a case involving the illegal acquisition of thousands of acres in Karachi’s Malir district by Bahria Town.
Riaz had said at the time that the recovered amount would be used to pay off the Supreme Court settlement, and the funds were subsequently transferred to the court’s accounts rather than the federal treasury.
On October 20, 2023, the Supreme Court noted that only Rs60.72 billion out of Rs460 billion had been paid. Of that, Bahria Town had paid just Rs24.26 billion.
In a post on X (formerly Twitter) on Tuesday, Malik Riaz appealed to authorities for a peaceful resolution:
“I would like to make a final appeal from the bottom of my heart that we be given a chance to return to serious dialogue, and a dignified solution.”
“For this purpose, we assure you that we will participate in any arbitration and implement its decision 100 per cent,” he said. “If the arbitration decision requires payment of money from our side, we will ensure its payment, God willing.”
Riaz added that he had faith in Pakistan’s institutions to act “with justice, wisdom, and prudence,” and to help lead the country out of this “difficult juncture.”
He also issued a grim warning about Bahria Town’s financial health, stating that operations across Pakistan were on the verge of collapse due to cash flow disruptions and legal uncertainty:
“Our cash flow has been completely destroyed, it has become impossible to provide daily services, we are unable to pay the salaries of our tens of thousands of staff, and the situation has reached a point where we are being forced to completely shut down all Bahria Town activities across Pakistan.”
“We are certainly one step behind this last step,” he warned, “but the situation on the ground is getting worse by the minute.”
Earlier in June, NAB ordered the freezing of over 450 immovable properties connected to individuals named in the Bahria Town Karachi land case. On June 12, the IHC issued a stay order halting NAB’s planned auction of Bahria Town properties in Rawalpindi and Islamabad—the auction was scheduled for the same day.
Last month, NAB filed a petition seeking to vacate the stay. The court has since reserved its verdict.
Riaz had previously alleged in May 2023 that he was being pressured for political motives, though he declined to name any individuals or institutions. He insisted at the time that he would not bow to pressure, despite facing growing losses in his business operations.
