FCC lifts ban on conversion of residential plots to commercial plots
The Federal Constitutional Court has lifted the ban on converting residential plots to commercial use in Karachi, offering significant relief to developers while maintaining protection for amenity plots and public land.
- Lifting of the ban on residential plot conversion in Karachi.
- Protection of amenity plots from commercial or residential use.
- The court's expectations for town planning authorities.
ISLAMABAD: The Federal Constitutional Court has lifted the ban on the conversion of residential plots to commercial and recreational use in Karachi, granting significant relief to builders and developers.
A two-judge bench headed by Justice Aamer Farooq on Tuesday disposed of the case, setting aside a previous ruling that had prohibited the conversion of residential plots into commercial properties in the city.
The bench clarified that amenity plots, including parks, hospitals, schools, mosques, playgrounds, and graveyards, cannot be used for commercial or residential purposes.
During the hearing, Justice Aamer remarked that the Court would not interfere in the functioning of institutions such as the Sindh Building Control Authority (SCBA).“If any institution violates the law, the relevant forum or the High Court can be approached,” said Justice Aamer.
READ MORE: Residential plots to commercial use: ABAD hails FFC’s ruling on lifting conversion ban
He further said that the affected parties also have the right to file appeals against the High Court decisions. Justice Aamer also said that the Court’s suo motu power no longer exists and emphasized that laws are already in place to address violations of building regulations.
The court expressed its expectation that town planning authorities will perform their duties with integrity and in good faith. By withdrawing the earlier restrictive decision, the Federal Constitutional Court has cleared the path for legal commercial activity while reiterating that this shift should not serve as an obstacle to legitimate regulatory oversight. The bench concluded that while the ban on category conversion is lifted for private plots, the protection of communal and public land remains a priority for the urban landscape.
Justice Arshad Hussain remarked that any official found violating the law would face legal action. “Courts cannot make laws; they can only ensure their implementation,” Justice Aamer added.
A two-member bench of the Supreme Court in January 2019 had imposed a complete ban on conversion of residential and amenity plots into commercial spaces in Karachi and directed the authorities concerned, including cantonment boards, to review all such conversions allowed by them in the provincial capital.
Copyright Business Recorder, 2026
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