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

The business community of Islamabad has strongly rejected the Federal Board of Revenue (FBR) decision to sharply increase property valuation rates, calling it unrealistic, anti-business, and damaging for the national economy. Traders, real estate developers, and industrial representatives have announced a sit-in protest outside FBR House on December 22, 2025, if the controversial notification is not withdrawn immediately.

According to business leaders, property valuation rates have been increased by up to 1,700 percent, triggering panic across the real estate and construction sectors. The sudden hike has already caused a halt in property transfers, heavy financial losses, and growing mistrust among investors.

What Is the FBR Property Valuation Hike?

The FBR property valuation hike in Islamabad refers to a new notification issued by the Federal Board of Revenue, revising official residential and commercial property values.

Under this notification:

• Property values were increased from 200% up to 1,700%
• Transfer fees surged dramatically
• Buyers and sellers faced unexpected tax burdens
• Real estate transactions slowed down almost completely

Normally, DC rates and FBR valuation tables are revised gradually after consultation. However, this time, the decision was taken without stakeholder input, making it highly controversial.

Islamabad Chamber of Commerce Leads the Protest

The protest movement is being led by the Islamabad Chamber of Commerce and Industry (ICCI).

Press Conference at ICCI

During a crowded press conference at the ICCI Chamber House, ICCI President Sardar Tahir Mahmood announced the unanimous rejection of the FBR notification.

He stated that:

• The increase is unjustified and irrational
• No market survey or assessment was conducted
• Stakeholders were not consulted
• The decision threatens business survival

He warned that a sit-in will be held outside FBR House on December 22 if the notification is not withdrawn.

Property Transfer Fees Surge Overnight

One of the biggest consequences of the FBR valuation hike is the massive increase in property transfer fees.

According to business leaders:

• Transfer fees jumped from around Rs. 4 million to Rs. 10 million
• Buyers can no longer afford transactions
• Sellers are unable to close deals
• The market has practically frozen

This sudden burden has made property buying in Islamabad extremely expensive, pushing investors away.

Real Estate Sector Comes to a Standstill

The Islamabad real estate market has been severely affected.

Zero Property Transfers Reported

ICCI President claimed that:

• Property transfers have completely stopped
• The government collected zero tax revenue over the last four days
• The policy has backfired economically

Instead of increasing revenue, the valuation hike has blocked transactions, hurting both the government and private sector.

Business Community Ready to Sell Properties to FBR

In a bold statement, Sardar Tahir Mahmood said the business community is:

• Ready to sell properties to FBR at prices lower than revised valuations
• Willing to sell at half of the notified rates
• Proving that the new rates are 50% higher than market prices

This challenge exposed the gap between market reality and official valuation tables.

Housing Crisis in Pakistan Worsens

Pakistan already faces a housing shortage of nearly 20 million units. Business leaders warned that:

• Higher property taxes will discourage construction
• Developers will halt new housing projects
• Middle-class home ownership will decline

The construction sector, a major job provider, is now at serious risk due to the FBR decision.

Impact on Investment and Ease of Doing Business

The business community emphasized that the valuation hike has:

• Shaken investor confidence
• Damaged Pakistan’s ease of doing business ranking
• Discouraged foreign and local investment
• Increased unemployment risks

At a time when the government is trying to revive the economy, such policies send negative signals to investors.

Traders Warn of Economic Fallout

Business leaders warned that if the decision is not reversed:

• Industries may shift to other regions or countries
• Small businesses may shut down
• Unemployment will rise
• Economic instability will deepen

They called the move coercive and anti-industry, saying it treats legitimate business activity like a crime.

Strong Support from Trader Associations

Several trader groups fully supported the protest call.

Ajmal Baloch’s Announcement

Ajmal Baloch, President of the All Pakistan Anjuman-e-Tajiran, announced that:

• The entire city will participate in the December 22 protest
• Traders will stage a sit-in outside the Chairman FBR’s office
• The government must end corruption

He also demanded:

• Abolition of the Point of Sale (POS) system
• Strict punishment for corruption
• Immediate removal of Federal Finance Minister Muhammad Aurangzeb

Allegations of Corruption in FBR

Trader leaders alleged that:

• No work is done in FBR without bribery
• POS system is being misused against small shopkeepers
• Honest taxpayers are being harassed

They demanded transparency, accountability, and reforms instead of harsh taxation.

Why Was the Valuation Revision Delayed?

Business leader Ahsan Malik questioned why:

• FBR delayed property valuation revision for 1.5 years
• Then suddenly imposed an extreme hike overnight

He said gradual revision could have avoided chaos, but sudden action has destroyed trust.

Consultative Meeting Highlights

A large consultative meeting was held at ICCI involving:

• Traders
• Industrialists
• Real estate developers
• Construction sector representatives
• Islamabad residents

All speakers unanimously declared the notification:

• Unilateral
• Anti-business
• Economically dangerous

They demanded immediate withdrawal.

Appeal to Prime Minister and Army Chief

ICCI President appealed to:

• Prime Minister Shehbaz Sharif
• Chief of Defence Forces Field Marshal Asim Munir

He urged them to:

• Take notice of the crisis
• Protect economic stability
• Stop policies harming business confidence

He termed the FBR move a conspiracy against economic revival efforts.

December 22 Sit-In: What to Expect?

If the valuation table is not withdrawn:

• Sit-in outside FBR House on December 22, 2025
• Participation from traders, developers, shopkeepers
• City-wide protest support

Business leaders say they are fully united and prepared for strong resistance.

Conclusion

The FBR property valuation hike in Islamabad has triggered a major backlash from the business community. Instead of increasing revenue, the policy has frozen real estate activity, shaken investor confidence, and worsened Pakistan’s housing and economic challenges.

Without urgent review and stakeholder consultation, the situation may escalate into prolonged protests and deeper economic damage. The coming days, especially December 22, will be critical in determining whether the government listens to the concerns of its business community or pushes forward with a policy widely seen as unsustainable.

Frequently Asked Questions (FAQs)