Members of the Association of Builders and Developers of Pakistan (ABAD) are considering corporatizing their businesses and exploring registration as Real Estate Investment Trusts (REITs) following an awareness session conducted by the Securities and Exchange Commission of Pakistan (SECP). The session was held at ABAD’s head office in Karachi and was led by SECP Commissioner Muzzafar Ahmed Mirza, with members of the builder and developer community attending the briefing. ABAD Chairman Mohammed Hassan Bakshi, Senior Vice Chairman Syed Afzal Hameed and Vice Chairman Tariq Aziz Memon were among the representatives present. The session formed part of SECP’s outreach efforts to encourage greater awareness of corporate structures and investment-related frameworks within the real estate sector. According to SECP, the discussions focused on how businesses can benefit from incorporation, including the creation of a separate legal entity and limitations on shareholder liability. The engagement also provided an opportunity for real estate businesses to understand the regulatory processes involved in formalizing their operations and exploring structures that can support broader participation in capital markets.
A significant part of the briefing focused on digital incorporation and the role of SECP’s eZfile platform in simplifying corporate filings. The platform, together with digital registry integration, has made several incorporation and filing processes faster and more accessible for businesses. For builders and developers, greater use of formal corporate structures can provide a framework for clearer ownership arrangements, governance and regulatory compliance. The SECP briefing also highlighted potential advantages associated with corporate status, including improved access to financing and greater opportunities to engage with domestic and international markets. These factors are particularly relevant to real estate businesses that may seek to move beyond conventional business structures and explore institutional investment models. The regulator has been expanding digital services and corporate-sector reforms as part of efforts to improve the ease of doing business. SECP’s recent engagements with business communities have similarly emphasized corporatization, digital services and capital-market development.
The discussion also covered Real Estate Investment Trusts, or REITs, as another potential structure for businesses operating in the property sector. REITs provide a regulated investment structure through which real estate assets can be organized for investment purposes, creating a connection between property-related businesses and capital-market mechanisms. The development of the REIT segment has remained an area of regulatory attention for SECP, which issued proposed reforms in September 2026 aimed at accelerating growth in Pakistan’s REIT sector. The regulator’s wider work in this area indicates an ongoing focus on creating structures that can support real estate investment through formal and regulated channels. ABAD’s interest in corporatization and REIT registration therefore comes amid broader discussions around formalization and the development of investment structures for Pakistan’s property market.
Following the session, ABAD leadership appreciated SECP’s outreach and agreed to coordinate on recommendations concerning the real estate sector under the Companies Act, 2017. The engagement could provide a basis for continued discussions between the regulator and representatives of the construction and development industry on corporate structures, compliance requirements and investment mechanisms. ABAD has also recently been involved in discussions related to the formation and subscription of the First ABAD REIT, indicating that REIT structures are already receiving attention within the association’s membership. The latest SECP briefing adds another dimension by linking REIT opportunities with wider corporate formalization and digital incorporation processes. For real estate businesses considering incorporation, the discussions provide information on how corporate structures and regulated investment vehicles can be used within Pakistan’s existing legal and regulatory framework.
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