Uncertainty grips Bahria Town residents after auction of Malik Riaz’s assets

ISLAMABAD: As the National Accountability Bureau (NAB) began auctioning properties of business tycoon Malik Riaz, residents, property dealers and investors in Pakistan’s largest private housing scheme, Bahria Town, face growing uncertainty.

“Building and living in a home here was a dream,” said Fahad Ahmed, a Bahria Town Rawalpindi resident. “A few months ago, life here was peaceful. Now, we’re worried and full of questions. If this continues, it will cause serious harm to all.”

Ahmed referred to Riaz’s recent statement warning that Bahria Town’s operations across Pakistan were on the verge of collapse.

Other residents echoed the concerns. Abdul Qudoos said security patrols, daily garbage collection and quick maintenance services had all declined. “Security staff numbers have fallen, streetlights often go off, and everyone fears what will happen if operations stop,” he said.

Property transactions have also slowed. “I’ve invested my life savings here, but buying and selling has practically frozen,” Shahid Javed told the BBC Urdu.

On August 5, Information Minister Attaullah Tarar assured residents their rights would be protected, saying the investigation targeted alleged money laundering and illegal activities. He claimed that the FIA also found evidence of over Rs1 billion in such transactions.

Riaz, who lives abroad, denies the allegations, blaming government pressure — including staff arrests, bank account freezes and vehicle seizures — for paralysing operations.

Scale of operations

Bahria Town has projects in Karachi, Islamabad, Rawalpindi, Lahore and Nawabshah, with around 150,000 homes, 50,000 employees and up to a million residents. Karachi’s is the largest, while Lahore’s is a major commercial hub.

Services under strain

The housing society runs its own grid stations, sells power at slightly higher rates than WAPDA, and handles water, gas, security and cleanliness. But a Bahria Town official said staffing cuts over the past year have affected services. If conditions worsen, administrative offices could close entirely, ending regular civic services.

Some residents claim NAB now collects payments directly at Bahria Town’s head offices, diverting fees from the administration to the government.

Impact on the market

Once a safe investment bet, Bahria Town is now seeing sharp declines in property transfers. A Karachi investor said commercial deals have stalled, while shutdown rumours deepen losses.

Javed urged the government to punish wrongdoers without harming ordinary citizens: “Authorities issued the permits and approvals we relied on. If one person committed a crime, he didn’t do it alone.”

Legal troubles

Malik Riaz is a proclaimed offender in the Al-Qadir Trust case involving former prime minister Imran Khan, accused of receiving land in exchange for legalising £190 million returned to Pakistan by UK authorities. In January, an accountability court ordered the freezing of Riaz’s and his son Ahmed Ali Riaz’s properties.

In 2020, NAB approved a Rs9.05 billion plea bargain in six cases against Riaz’s son-in-law Zain Malik, who later defaulted. Properties pledged as collateral are now being auctioned.