Guide
Does Sindh Have a RERA? Karachi vs Islamabad and Punjab Buyer Protection
By Maham Imtiaz
Real Estate AnalystVerified author
9 min read
Buyers who have read about real estate regulatory authorities in India or Dubai often assume Pakistan has something similar: one body that registers projects, holds buyers' money in escrow, licenses agents and hears complaints. Sindh does not. There is no Real Estate Regulatory Authority for Karachi, and the protection buyers do have is spread across SBCA, the land authorities, the courts and a federal company law that has never been fully switched on.
Knowing where protection actually sits changes how you check a deal. Our guide on how to verify property in Karachi explains that every Karachi purchase must be checked layer by layer with the authority responsible for each, and the absence of a RERA is the main reason that work falls on the buyer.
This guide explains what a RERA does, where Islamabad, Punjab and the federal government stand, what Sindh has instead, the gaps that leave Karachi buyers exposed, and the checks that fill those gaps.
What a RERA would do
A real estate regulatory authority typically combines several protections in one body.
| Function | What it protects against |
|---|---|
| Project registration | Selling projects that lack land title or approvals |
| Escrow of buyers' money | Developers diverting instalments to other projects |
| Disclosure rules | Advertisements that hide NOC status, charges or timelines |
| Agent licensing | Unqualified or dishonest dealers |
| Complaint tribunal | Long civil suits for delayed or undelivered units |
| Penalties | Developers who miss possession dates or change plans |
The Competition Commission of Pakistan recommended exactly this in a 2019 opinion after public hearings in Islamabad, Lahore and Karachi: a regulator to license developers and agents, regulate advertisements and deposits, handle complaints and impose penalties.
Where Islamabad stands
Islamabad is the only part of Pakistan with a RERA law. The Islamabad Real Estate (Regulation and Development) bill passed by Parliament became law on 9 November 2020, setting up a six-member authority to regulate the sector, protect consumers and register projects and agents.
| Item | Status |
|---|---|
| Law | Islamabad Capital Territory RERA Act, assented November 2020 |
| Authority | Partly notified on 20 October 2021 with four of six members |
| Why stalled | The mayor sits on the committee that selects the last two members; no mayor since February 2021 |
| Proposed fix | RERA Amendment Bill 2026 to let the committee work without a mayor |
| Competing views | The Law Ministry has indicated it may repeal and replace the law; the CDA wants RERA's functions folded into its own ordinance |
For Islamabad buyers, the practical result is that project approval and agent oversight still sit largely with the CDA, much as they would without a RERA law.
Where Punjab stands
Punjab regulates housing schemes mainly through its development authorities and housing departments rather than a standalone RERA.
| Tool | What it does |
|---|---|
| Punjab Development Authority Private Housing Schemes Rules 2021 | Approval and monitoring of private housing schemes; amended in August 2026 |
| PHATA Affordable Private Housing Scheme Rules 2020 | Rules for affordable schemes; revised in August 2026 |
| Digital regulatory system | Announced in April 2026 for paperless scheme approvals and verified property transactions; still in development |
Punjab's approach puts more scheme-level oversight in one department, but it is still not a RERA with escrow and a complaint tribunal.
The federal picture
| Development | Status |
|---|---|
| Section 456, Companies Act 2017 | Requires SECP approval before a real estate company advertises or takes advances, and escrow of buyers' payments; SECP said in October 2025 the framework "has so far remained in abeyance" |
| Federal RERA plan | The prime minister discussed setting up a RERA in March 2026; no bill or timeline announced |
| CCP 2019 opinion | Recommended a national regulator and noted that regulating agents is a parliamentary matter |
The escrow rule is the most important gap. It exists in federal law, but only for companies registered with SECP, and it has never been fully enforced.
What Sindh has instead
Sindh has no RERA, but several laws and bodies cover parts of the job.
| Protection | Source | What it does for buyers |
|---|---|---|
| Sale and advertisement NOC | Sindh Building Control Ordinance 1979 | A builder cannot sell or advertise units in a project without SBCA's NOC |
| Approved building plan | SBCO and KBTPR 2002 | Construction must follow an approved plan |
| Completion plan rule | Section 18-G, SBCO | No registry or utilities for new units without a completion plan |
| Complaint and hearing forums | SBCA | SBCA's public hearing and complaint mechanisms; the High Court sent a 2026 dispute to SBCA's own forum |
| Land records | KDA, MDA, Lyari DA, Board of Revenue | Title and allotment checks |
| Courts | Sindh High Court | Orders on illegal construction, demolition and registry |
| Consumer bodies | Consumers Association of Pakistan | Complaint support; in October 2026 it called for a ban on unapproved projects |
What Sindh lacks is the glue: no project registry with buyers' money in escrow, no licensing of estate agents, and no specialised tribunal for delayed possession. Our report on how the CCP targeted misleading real estate marketing shows how false NOC claims and hidden charges reach buyers in the meantime.
Karachi, Islamabad and Punjab compared
| Protection | Karachi (Sindh) | Islamabad | Punjab |
|---|---|---|---|
| RERA law | None | Yes, 2020, not fully functional | No standalone RERA |
| Project approval and sale NOC | SBCA | CDA | Development authorities |
| Escrow of buyers' money | No provincial rule; federal rule in abeyance | Provided in RERA law, not operational | Not standard |
| Agent licensing | None | Provided in RERA law, not operational | Limited |
| Specialised complaint tribunal | None | Provided in RERA law, not operational | None |
| Registry tied to completion | Yes, section 18-G | Varies by authority | Varies by authority |
What the numbers show: Milkiyat.com findings
Islamabad's RERA has run at two-thirds strength. Four of six members were notified: 4 ÷ 6 = about 67%. The law required the authority within one year; nearly six years after assent, it is still incomplete.
The federal escrow rule has waited nine years. The Companies Act was passed in 2017, and SECP said in October 2025 the framework remained in abeyance: 2025 − 2017 = 8 years, approaching 9 by late 2026.
Even the one RERA law Pakistan has is now being reconsidered. Our report on how the Islamabad RERA framework is under review follows the latest proposals.
The CCP's recommendation is seven years old. From the 2019 opinion to 2026 is 7 years, with no national regulator yet.
Sindh buyers rely on at least five different bodies. SBCA, the relevant land authority, the sub-registrar, the courts and consumer bodies, compared with one body under a full RERA model.
How Karachi buyers can protect themselves without a RERA
- Check the SBCA sale NOC for any off-plan project, directly with SBCA.
- Check the land title with the land-owning authority, not the builder's brochure.
- Pay only into the builder's company account against receipts, never in cash or to a dealer's personal account.
- Read the booking agreement for possession dates, penalties for delay and how extra charges are calculated.
- Confirm the approved plan matches what you are buying, including floor and unit number.
- Hold back final payment until the completion plan is confirmed.
- Keep every receipt and advertisement, which may be needed for a complaint or court case.
- Use SBCA's complaint forum for building disputes, and a lawyer for title or payment disputes.
Checklist before you pay
| Check | Where |
|---|---|
| Sale and advertisement NOC | SBCA |
| Land title | KDA, MDA, Lyari DA, Board of Revenue or society |
| Approved building plan | SBCA |
| Payment to the developer's company account | Bank receipt |
| Possession date and delay penalty in writing | Booking agreement |
| Completion plan before final payment | SBCA |
Frequently asked questions
Q1. Does Sindh have a RERA?
A. No. Sindh has no real estate regulatory authority. Buyer protection comes from SBCA, the land authorities, the courts and consumer bodies.
Q2. Does Islamabad have a RERA?
A. Islamabad has a RERA law from 2020, but the authority was only partly formed in 2021 and has not been fully functional because the selection committee needs a mayor.
Q3. Does Punjab have a RERA?
A. Punjab regulates housing schemes through development authorities and housing rules, revised in August 2026, and announced a digital regulatory system in April 2026. It does not have a fully functioning standalone RERA.
Q4. Is there an escrow rule for buyers' money in Pakistan?
A. Section 456 of the Companies Act 2017 provides for escrow by SECP-registered real estate companies, but SECP said in October 2025 that the framework had remained in abeyance.
Q5. Who regulates builders in Karachi?
A. SBCA issues sale and advertisement NOCs, building plans and completion plans under the Sindh Building Control Ordinance 1979.
Q6. Where can a Karachi buyer complain about a builder?
A. To SBCA's complaint forum for building matters, consumer bodies for support, and the courts for title, payment or delay disputes.
Q7. Is a national RERA coming?
A. The federal government discussed setting up a RERA in March 2026, but no bill or timeline has been announced.
This guide is for general information. Real estate laws and regulatory plans change, and buyers should confirm the current position with SBCA, SECP, the relevant land authority and a qualified lawyer before paying.