Business Community Rejects FBR’s Massive Property Valuation Hike in Islamabad, Plans Sit-In

The business community has outrightly rejected the Federal Board of Revenue’s (FBR) decision to substantially increase property valuation rates in the federal capital and has announced a protest demonstration and sit-in outside the FBR House on December 22 if the notification is not withdrawn. This unanimous stance was announced by the President of the Islamabad Chamber of Commerce and Industry (ICCI), Sardar Tahir Mahmood, during a crowded press conference at the Chamber House on Monday evening. Under the controversial FBR notification, official residential and commercial property values in Islamabad have reportedly been increased by up to 1,700 percent. According to Mahmood, property values were raised from 200 percent to as much as 1,700 percent. He noted that DC rates are usually revalued by a certain percentage, but when FBR officials act after years of inaction, they introduce unrealistic and unjustified valuation hikes. He added that the business community is strongly protesting this move, stating that property values were increased without proper assessment. Sardar Tahir Mahmood warned that the trader community would stage a strong protest and sit-in in front of the FBR on December 22 if the notification is not immediately withdrawn. He said doing business in Pakistan had effectively become a crime, adding that the FBR had overnight raised property valuations in Islamabad by up to 1,700 percent without consulting stakeholders. As a result, property transfer fees have surged from around Rs. 4 million to as high as Rs. 10 million. He further stated that despite extremely unfavorable conditions, the business community is struggling to keep businesses alive. He pointed out that an SRO regarding property value tax was issued in November 2025, after which property transfer fees increased drastically. Mahmood said the business community was even ready to hand over properties to the FBR at prices lower than the revised valuations, terming the increase irrational. He claimed that due to incompetence and poor decision-making, property transfers had come to a halt, resulting in zero tax collection for the national exchequer over the past four days. He also highlighted that the country is already facing a shortage of nearly 20 million housing units. Challenging FBR officials, he said the business community was ready to sell properties at half the revised valuation rates, calling the increase about 50 percent higher than prevailing market prices and completely unacceptable. Sounding the alarm, the ICCI president said such coercive measures would choke trade and industry in the region, leading to massive unemployment, business closures, economic instability, and the relocation of industries to other regions and countries. He added that the sudden, unilateral increase in property valuations in the real estate sector had shaken investor confidence and dealt a severe blow to the ease of doing business. Calling for immediate intervention, Sardar Tahir Mahmood appealed to Prime Minister Shehbaz Sharif and Chief of Defence Forces Field Marshal Asim Munir to take notice of the gravity of the situation and safeguard the country’s broader economic interests. He termed the FBR’s move a conspiracy against the Prime Minister’s efforts to revive industry and create a business-friendly environment, expressing regret that certain elements were attempting to undermine these initiatives. Chairman ICCI Founder Group Sheikh Tariq Sadiq fully endorsed the decision to hold protests and a sit-in. President of the All Pakistan Anjuman-e-Tajiran, Ajmal Baloch, announced that the entire city would participate in the December 22 protest. He also demanded an end to corruption under the guise of the Point of Sale system imposed on small shopkeepers and called for strict action against those involved. Additionally, he demanded the immediate removal of Federal Finance Minister Muhammad Aurangzeb. Business leader Ahsan Malik also addressed the press conference, voicing serious concerns over the negative impact of the increased valuations on economic activity and questioning why the FBR had kept property valuation revisions in Islamabad pending for the past one and a half years. Earlier, a consultative meeting was held at the ICCI with active participation from representatives of trade, industry, real estate, construction sectors, and residents of the federal capital. Speakers, including Sardar Tahir Mahmood, Sheikh Tariq Sadiq, Chaudhry Abdul Rauf, Kashif Chaudhry, Ajmal Baloch, Israr Mishwani, and others, unanimously termed the notification unilateral, irrational, and anti-business, demanding its immediate withdrawal. They warned that such abrupt measures without meaningful consultation would harm investment, real estate activity, and overall economic confidence, stressing that erosion of trust at this critical juncture could further deepen the country’s economic challenges. Senior Vice President Tahir Ayub, Vice President Irfan Chaudhry, former presidents Mian Akram Farid, Muhammad Ijaz Abbasi, Mian Shaukat Masood, executive committee members, and a large number of trader leaders were also present. Trader leader Ajmal Baloch announced that if the valuation table was not withdrawn by December 22, traders would stage a protest outside the Chairman FBR’s office. He said that while the Prime Minister was seeking foreign investment, not a single investor was coming due to such policies. He alleged that the Finance Minister had destroyed the business environment and demanded his immediate removal. He further alleged that no work was being done in the FBR without bribery, calling for an end to corruption. He demanded the abolition of the Point of Sale system and said that corruption should carry the strictest punishment. He concluded by saying that the entire business community was united and would record a strong protest if their demands were not accepted.