The Government of Pakistan has finalized plans to launch the Real Estate Regulatory Authority (RERA) to enhance transparency, curb tax evasion, and regulate unauthorized transactions in the real estate sector.

According to reports, the new regulatory framework will introduce strict penalties for violations, including fines of up to PKR 1 million and prison sentences of up to three years.

Key Provisions of the New Real Estate Regulations:

·      Unregistered real estate transactions: Individuals conducting property transactions without proper registration may face fines ranging from PKR 50,000 to PKR 500,000.

·      False information by real estate agents: Property dealers providing misleading or incorrect details could be penalized between PKR 200,000 and PKR 500,000.

·      Wrongful property transfers: Unauthorized or fraudulent property transfers may result in fines between PKR 500,000 and PKR 1 million.

·      Failure to submit required documentation: Non-compliance with document submission requirements could lead to penalties from PKR 50,000 to PKR 200,000.

The initiative aims to boost tax compliance and streamline real estate transactions, ensuring a more structured and transparent property market in Pakistan. These measures coincide with the government's ongoing economic reforms as policy-level discussions with the International Monetary Fund (IMF) begin today.