Dealing with Construction Permits in Pakistan

The table below summarizes the procedures, time, and costs to build a warehouse in Pakistan.

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Building a warehouse

Data as of: January 2009
Estimated Warehouse Value: PKR 9,800,000
City: Karachi

Requirements Summary:


  Procedure Time to complete: Cost to complete:
1 Obtain letter from concerned authority confirming the land title 30 days no charge
2 Obtain a building permit 60 days PKR 140,000
3 Notify the Karachi Building Control Authority (KBCA) in writing of the completion of foundations 1 day no charge
4 Receive foundations work inspection from the Karachi Building Control Authority (KBCA) 15 days no charge
5 Request electricity connection 75 days PKR 228,000
*6 Request telephone connection 45 days PKR 4,150
*7 Obtain copy of property tax valuation and copy of the certificate from the tax authorities 30 days no charge
8 Receive inspection from the Excise and Taxation department 1 day no charge
*9 Request water and sewerage connection 60 days PKR 90,000
10 Apply for occupancy permit and request final inspection 1 day no charge
*11 Receive final inspection 1 day no charge
12 Receive completion certificate from the Karachi Building Control Authority (KBCA) 51 days no charge
* Takes place simultaneously with another procedure.

Requirement Details

Procedure 1.
Obtain letter from concerned authority confirming the land title
Time to complete:
30 days
Cost to complete:
no charge
Name of Agency:
Land Owning Authority
Comment:
The company must obtain a letter from the concerned authority confirming the title or land use, the dimensions of the plot, and the possible existence of any road widening, cut line, or reservation. In Karachi, the lands are owned by various authorities, such as the Karachi Development Authority and the Karachi Municipal Corporation. If the land belongs to the Karachi Municipal Corporation, for example, then the required letter or certificate must be obtained from that same authority.
Procedure 2.
Obtain a building permit
Time to complete:
60 days
Cost to complete:
PKR 140,000
Name of Agency:
Karachi Building Control Authority
Comment:
An application form is to be submitted to the Karachi Building Control Authority (KBCA) along with the following documents:

1. A building plan (initially three copies and then six copies) together with:
a. Full particulars of the land plot with a specification of its intended use (such as residential, commercial).
b. Two sets of all documents relating to the plot and a letter from the concerned authority confirming the title or land use, the plot dimensions, and the possible existence of any road widening, cut line, or reservation.

2. A plan description:
a. Any proposed and/or revised addition and/or alteration.
b. Any previous approval, if applicable.
c. Details of any litigation relating to the plot.

Note: The drawings should show plans, sections, and elevations, together with other necessary details pertaining to RCC elements, joinery work, and covered areas, and the like, of every floor, including the basement, if there is one. In addition, a block plan of the site, drawn to a scale of not less than 1:500 (1”:8’) should be included. Such plan and sections should show the building’s intended use; the access to and from the various parts of the building; the position dimensions; the means of ventilation; the proposed plinth height; the superstructure at each floor level; and the dimensions and descriptions of all the walls, floors, roofs, staircases, elevators, and the like.

3. A description of the proposed construction:
a. Type of building.
b. Total floor area.
c. Number of floors.
d. Number of units (for public sale projects only).
e. Car parking space.
f. Area of amenity space.

4. Particulars of the licensed professionals employed to prepare the plan and supervise work:
a. Name.
b. License number/professional registration number from the Public Electricity Corporation (PEC).
c. National identity card number
d. Mailing and permanent address/ telephone number.
e. Office address and telephone number.

5. A specification of the building’s intended use (i.e., is it destined for public sale).

6. A list of other documents to be attached to the application (photocopies should be duly attested by the professional):
a. Lease/sale deed, allotment order, mutation (or transfer) order (or extract).
b. Possession order.
c. Acknowledgement of possession.
d. Site plan.
e. No-objection certificate (NOC), if applicable.
f. National identity card.
g. Letter from the owner, or attorney of the owner, authorizing a named professional whose license or registration number should also be provided, to complete and comply with the requirements of the Sindh Building Control Ordinance of 1979, as amended, and with the requirements of the regulations framed under the ordinance for and on behalf of the owner. The letter should also indicate that a plinth certificate notice would be provided at the completion of the plinth as required under section 3-2.10 of the Karachi Building and Town Planning Regulations of 2002. The letter should also specify that the owner would abide by all the aforementioned rules and regulations, and it must be signed by the owner or the owner’s attorney, contain their national identity card number, email address; mailing, and permanent address and telephone number; as well as the signature and particulars of the architect and structural engineer.

7. A form specifying the architect’s and structural engineer’s undertaking:
The KBCA operates under the Sindh Local Government Ordinance of 2002, and falls under the control of the Karachi City District Government of which the Nazim (elected head of Karachi city local council) is the chief executive.

If the property is in a military cantonment jurisdiction, the company must send the documents to the Cantonment Board, which takes about 30 days. The model considered here assumes that the property is not located in this type of jurisdiction.
Procedure 3.
Notify the Karachi Building Control Authority (KBCA) in writing of the completion of foundations
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Karachi Building Control Authority
Comment:
Upon completion of the plinth level, BuildCo is required to notify the KBCA so that the latter verifies the building lines.
Procedure 4.
Receive foundations work inspection from the Karachi Building Control Authority (KBCA)
Time to complete:
15 days
Cost to complete:
no charge
Name of Agency:
Karachi Building Control Authority
Comment:
Except for Category 1 building works, Regulation No. 3-2.10 of the 2002 Regulations requires BuildCo to notify the KBCA upon completion of plinth level and, in the case of a basement, upon the completion of foundations, so that KBCA can verify the building lines. Regulation No. 3-2.10 also indicates that no further work can be carried out for the 15-day period following the notification date.

During this period, the KBCA either approves the building lines or informs the owner or owner’s representative of any possible errors found. If no response is received from the KBCA within the 15-day period, the owner can proceed with the building works after notifying the KBCA, provided that the construction is consistent with the approved building plan.
Procedure 5.
Request electricity connection
Time to complete:
75 days
Cost to complete:
PKR 228,000
Name of Agency:
Karachi Electric Supply Corporation Limited
Comment:
An application form is to be submitted to the Karachi Electric Supply Corporation Limited, along with the following documents, to apply for electricity connection:
- An application form, duly verified by a licensed electrical contractor.
- A copy of the applicant’s national identity card.
- A copy of approved building plan.
- A copy of the letter under the cover of which the approved building plan was issued.
Procedure 6.
Request telephone connection
Time to complete:
45 days
Cost to complete:
PKR 4,150
Name of Agency:
Pakistan Telecommunication Company Limited
Comment:
An application form is to be submitted to the Pakistan Telecommunication Company Limited along with the following documents, to apply for a telephone connection:
- Proof of ownership of, or, in case of a tenancy, a copy of the lease agreement of, the plot where the telephone line is to be installed; or a copy of the utility bill in the name of the prospective customer.
- A certificate of incorporation (issued by the Securities and Exchange Commission of Pakistan) if the applicant is a company.
- A letter from the company authorizing a named person to sign the application for the new telephone connection.
At this stage, BuildCo already holds all documents above.
Procedure 7.
Obtain copy of property tax valuation and copy of the certificate from the tax authorities
Time to complete:
30 days
Cost to complete:
no charge
Name of Agency:
Tax Authorities
Comment:
The company must obtain a copy of the property tax valuation and a copy of the certificate from the tax authorities confirming that the company does not owe them any money. These documents are submitted along with the water connection application.

The Excise and Taxation Department of the Government of Sindh provides the property tax valuation after the building is completed. The department inspects the building and issues a certificate to the owner of the building. The certificate provides an assessment of the value of the building. If BuildCo has any objections to this assessment, it is required to make them known within 14 days. Otherwise, the department issues a PT-1 Form, a certificate that provides the assessed value of the property and the resultant property tax to be charged.

The documents needed are the following:
- An application providing information relating to the building.
- Title documents/ documents evidencing title of the property.
- Approved building plan.
- National identity card of the applicant.
Procedure 8.
Receive inspection from the Excise and Taxation department
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Excise and Taxation department
Comment:
Procedure 9.
Request water and sewerage connection
Time to complete:
60 days
Cost to complete:
PKR 90,000
Name of Agency:
Karachi Water and Sewerage Board
Comment:
An application form is to be submitted to the Karachi Water and Sewerage Board along with the following documents to apply for water and sewerage connection:
- A copy of the approved building plan along with a copy of the letter under the cover of which the approved building plan was issued by the KBCA.
- Proof of ownership of the plot, or, for a tenancy, a copy of the lease agreement.
- A copy of the property tax valuation.
- A copy of the certificate from the tax authorities confirming that the company owes them no money.
- A copy of the applicant’s national identity card.
Procedure 10.
Apply for occupancy permit and request final inspection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Karachi Building Control Authority
Comment:
After the building is completed, a “notice of completion and permission for occupation” form is to be submitted along with the architect’s certificate. After receipt of this notice, the KBCA inspects the building to verify that it has been built according to the approved plans.
Procedure 11.
Receive final inspection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Karachi Building Control Authority
Comment:
Procedure 12.
Receive completion certificate from the Karachi Building Control Authority (KBCA)
Time to complete:
51 days
Cost to complete:
no charge
Name of Agency:
Karachi Building Control Authority
Comment: