FBR Revises Property Valuation in Six Cities

The Federal Board of Revenue (FBR) has announced revised property valuation rates in six major Pakistani cities. This is important news for anyone buying, selling, or owning property in Pakistan. The FBR has made targeted changes to property values in Islamabad, Faisalabad, Gujranwala, Multan, Bahawalpur, and Sialkot. These revised rates will be used to calculate federal taxes including capital gains tax and withholding tax on property transactions.

Property valuation is the official value given to a property by the government. This value is very important because it affects how much tax you have to pay when you buy or sell property. The FBR decided to revise these values in six cities because the old values were not matching with actual market prices. This change will help both buyers and sellers in these cities.

Why Did FBR Make These Changes?

In Pakistan, there is often a big difference between the official property value set by the government and the actual price people pay when buying or selling property. Internationally, tax is charged on the actual transaction value, but in Pakistan, the tax was based on the collector value which is usually much lower than the real market value.

The FBR realized this was creating problems. Property prices were changing in the real market, but the official government values were not being updated. This meant property owners were getting incorrect tax calculations. The business community and real estate experts were also complaining about the outdated values. The FBR decided to fix this by revising property values in cities where the difference between official and actual prices was biggest.

Six Cities Affected by Property Valuation Changes

The FBR revised property values in these six cities:

Islamabad: Multiple revisions were made between December 2025 and April 2026. The latest notification SRO644 of 2026 offers 10-35% reduction in valuation rates in many urban sectors.
Faisalabad: Through notification SRO651 of 2026, specific locations and property categories were updated. Adjustments were made across multiple urban zones with fine-tuned market values.
Gujranwala: Defence housing, Askari schemes, and luxury schemes like Palm City Housing Scheme valuations were updated through notification SRO653 of 2026.
Multan: Selected localities and property categories were revised through notification SRO650 of 2026 without doing a complete citywide revaluation.
Bahawalpur: Major revisions were made in DHA Bahawalpur and Askari Housing Scheme valuations through notification SRO652 of 2026.
Sialkot: Specific locations had their residential open plot and built-up property rates updated through notification SRO662 of 2026.

Detailed Breakdown of Changes in Each City

Islamabad received the most attention from FBR. The initial notification SRO2393 of 2025 was released in December but was suspended until January 31, 2026 due to concerns from the business community. In February 2026, FBR issued a revised notification SRO163 of 2026 with downward adjustments. This was further amended through notification SRO332 of 2026. Finally, in April 2026, the FBR issued notification SRO644 of 2026 which offered additional relief with 10-35% reduction in valuation rates in many urban sectors. This latest notification superseded the earlier February notifications and reset the valuation benchmarks for the capital.

In Multan, the FBR took a selective approach. They did not do a complete fresh revaluation of the entire city but instead made amendments to specific localities and property categories. The broader 2024 valuation framework was kept intact. The FBR only revised areas where they felt the earlier values needed correction or updating. This was done through notification SRO650 of 2026 which amended the earlier notification SRO1729 of 2024.

Faisalabad saw similar selective revisions. The FBR issued notification SRO651 of 2026 which amended specific serial numbers and entries in the earlier notification SRO1688 of 2024. Rather than completely replacing the old notification, the FBR updated identified locations within it. Adjustments were made across multiple urban zones with special attention to fine-tuning market values for specific locations and property categories.

Bahawalpur received major revisions particularly in the popular DHA Bahawalpur and Askari Housing Scheme areas through notification SRO652 of 2026. These housing schemes are among the most sought-after locations in Bahawalpur, so the FBR prioritized getting their valuations right.

In Gujranwala, the revisions focused on defence housing and Askari schemes as well as luxury schemes such as Palm City Housing Scheme. These premium housing areas saw updated valuations through notification SRO653 of 2026. The FBR recognized that these areas were experiencing growth and development that was not reflected in the old valuation rates.

Sialkot received updates to specific locations where residential open plots and built-up property rates were adjusted. The changes were introduced through notification SRO662 of 2026. The FBR took a targeted approach focusing on areas that most needed updated valuations.

How These Changes Affect Property Buyers and Sellers

For buyers, lower property valuations mean lower taxes to pay on your purchase. This can reduce the total cost of buying property. For sellers, lower valuations mean lower capital gains tax on the profit you make from selling. Investors in real estate will especially benefit from these changes because they can reduce the tax on their property transactions.

People buying in high-value housing schemes and emerging urban clusters will see the biggest benefit. These were the areas where the gap between official and actual prices was largest. Now that valuations are updated, the tax system will be fairer and more aligned with reality.

Important Notifications and Dates

Keep these notification numbers and dates in mind:

December 2025: SRO2393 issued for Islamabad (suspended)
February 2026: SRO163 and SRO332 issued for Islamabad
April 16, 2026: SRO644 issued for Islamabad (latest)
SRO650 issued for Multan
SRO651 issued for Faisalabad
SRO652 issued for Bahawalpur
SRO653 issued for Gujranwala
SRO662 issued for Sialkot

What Property Owners Should Do Now

Check if your property is in one of the six affected cities and get the latest FBR notifications.
If you are selling property soon, understand the new valuation to know the taxes you will owe.
Contact a tax professional or property lawyer to understand how the new valuations affect your specific situation.
If you own property in a high-value housing scheme, you may see significant tax benefits from these revisions.
Visit the FBR website to get the official notification documents for your city.

Benefits of These Revisions

Fair Tax Calculation: Taxes are now based on realistic market values instead of outdated official values.
Lower Tax Burden: Property buyers and sellers pay lower taxes with the reduced valuation rates.
Business Friendly: The targeted approach helps specific areas without disrupting the entire system.
Real Estate Boost: Lower taxes can encourage more property transactions in these cities.
Market Confidence: Updated valuations reflect current market conditions and boost investor confidence.

Conclusion

The FBR's decision to revise property valuations in Islamabad, Faisalabad, Gujranwala, Multan, Bahawalpur, and Sialkot is a positive step toward a more fair and realistic property tax system. By bringing official property values closer to actual market prices, the government is creating a system that is fairer to both buyers and sellers. If you own property in any of these cities or are planning to buy or sell, understanding these changes is important. The revised valuations will directly affect the taxes you pay on property transactions. Consider consulting with a tax professional to understand exactly how these changes apply to your situation. This is good news for the real estate market in Pakistan and shows the government's commitment to supporting the property sector.