Speculations: is Bahria Town actually headed towards a possible default?

ISLAMABAD:  Bahria Town, the renowned housing society, might be contemplating a strategic move declaring bankruptcy, to sidestep a colossal payment of Rs460 billion, if certain journalists are to be believed.

The news of such possiblity has sent shockwaves across various cities, leaving investors in Bahria Town’s diverse schemes apprehensive about the fate of their investments.

Fueling these speculations is a V-log by Mansoor Ali Khan, who quoted journalist Waseem Abbas, shedding light on the possibility of Bahria Town taking this unconventional route.

The narrative gains momentum with reports indicating Bahria Town Peshawar struggling to attract customers, coupled with a significant 35 per cent drop in property prices in Bahria Town Karachi.

The genesis of this saga lies in the dealings between Bahria Town and the Malir Development Authority (MDA), involving a colossal sum of Rs460 billion. The Supreme Court, in the case, has issued notices to individuals associated with BTP, demanding transparency in the payment of installments agreed upon by Bahria Town for the acquisition of land on the outskirts of Karachi.

What is the controversy surrounding Bahria Town Peshawar?

The court’s directive outlines a clear path – upon the completion of the hefty payment, ownership of the expansive land would be transferred to Bahria Town Pakistan.

The real estate behemoth in return, would allocate the land to residents under a 99-year lease.

However, all might not be as straighforward as its sounds. “The bankrupcy rumors might or might not be ‘leaked’ in the market for a ‘pulse check’,” according a realtor who spoke to HUM News on condition of anonymity.

Meanwhile, Bahria Town has officially issued a statement that says “Through past challenges, we have weathered adversity, and our resolve to uplift Pakistan remains unwaivered.”

The statement, although worded reassuringly, does not specifcally mentions bankrupcy concerns.

Even if the rumors turn out to be false, this is probably the first time senior journalists are openly having a discussion on matters as serious as bankruptcy pertaining to the real estate giant Bahria Town.