PTCL’s I.I. Chundrigar Road Property Sale: Key Tax Considerations

Pakistan Telecommunication Company Limited (PTCL) has announced the sale of a prime property on I.I. Chundrigar Road, a premier commercial hub in Karachi, via a transparent and competitive bidding process, a move with significant tax implications for involved parties. For our clients, this transaction underscores the need for strategic tax planning to navigate potential capital gains tax, stamp duty, and transfer-related liabilities.

The 13,583-square-yard (approximately 27 kanal) plot, located next to Jang Press, features a corner position with a 500-foot frontage, ideal for commercial developments, high-end office spaces, or luxury residential projects. PTCL is calling for expressions of interest from individuals, firms, and corporate entities, with a submission deadline of May 31, 2025.

From a tax law perspective, this sale reflects PTCL’s asset optimization strategy, aimed at unlocking value from non-core assets to strengthen its balance sheet, potentially triggering taxable events under Pakistan’s Income Tax Ordinance. Entities bidding on this high-value asset must ensure compliance with Federal Board of Revenue (FBR) regulations, including withholding tax obligations on property transactions and proper documentation to avoid penalties.

The property’s prime location in Karachi’s financial district is set to attract real estate developers and investors, amplifying the need for tax-efficient structuring of the acquisition. Our firm advises clients to assess tax liabilities, leverage available exemptions, and mitigate risks associated with such high-profile transactions.