Bahria Town May Shut Down Amid Financial Crisis:
Property magnate Malik Riaz issued a stark warning on Tuesday, declaring that the operations of Bahria Town — one of Pakistan’s largest real estate developers — may soon come to a complete halt. His statement comes at a time when the Islamabad High Court (IHC) has reserved its judgment on the proposed auction of several Bahria Town properties, a move initiated by the National Accountability Bureau (NAB) over unpaid dues from a £190 million plea bargain.
In a passionate post on X (formerly Twitter), Riaz appealed to the country’s institutions for a “dignified solution” and reiterated his willingness to engage in arbitration. The plea followed mounting pressure from NAB, which had earlier revealed that Riaz and his son Ali Riaz agreed to a plea bargain in the UK-based £190 million settlement case but failed to meet payment obligations. As a result, NAB sought to auction Bahria Town properties under Section 33E of the NAB Ordinance, 1999, to recover the outstanding amount.
This crisis has deep roots. In 2019, the UK’s National Crime Agency (NCA) settled with Riaz’s family for £190 million, which was subsequently sent to Pakistan. Riaz had publicly stated that the recovered amount would count toward Bahria Town’s earlier Rs460 billion settlement with Pakistan’s Supreme Court in a case involving the illegal acquisition of thousands of acres of land in Karachi’s Malir district.
However, the Supreme Court later disclosed that only Rs60.72 billion had been paid from the Rs460 billion settlement, and out of that, Bahria Town itself had contributed just Rs24.26 billion. The massive shortfall has now brought Bahria Town’s financial health into question.
In his statement, Riaz said that the company’s financial structure had “collapsed,” with severe cash flow issues that have left them unable to pay salaries to thousands of employees. He added that Bahria Town is on the brink of closure, warning that “we are certainly one step behind this last step, but the situation on the ground is getting worse by the minute.”
Riaz stressed his confidence in Pakistan’s institutions and urged authorities to act with “justice, wisdom, and prudence” during this critical time. He offered full cooperation with any arbitration process and assured that if required, his company would comply fully with any financial orders resulting from such proceedings.
Last month, the IHC had issued notices regarding NAB’s request to lift a stay order preventing the auction of six Bahria Town properties in Rawalpindi and Islamabad. NAB has also moved to freeze more than 450 immovable assets linked to various individuals named in the Bahria Town Karachi land scandal. The auction, initially planned for June 12, was halted after the court intervened.
Now, with the court’s final decision pending, Malik Riaz’s dire warning has raised alarms across the real estate sector. The potential shutdown of Bahria Town — a project that spans multiple cities and employs tens of thousands — could have widespread implications for investors, workers, and Pakistan’s broader economy.
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