In a significant ruling delivered by an accountability court in Islamabad, retired Colonel Khalilur Rehman, the chief operating officer of Bahria Town, has been sentenced to a decade behind bars. The court found him guilty of orchestrating a large-scale money laundering operation involving billions of rupees, marking a notable development in Pakistan’s ongoing crackdown on financial crimes within the real estate sector.
The court’s verdict revealed that Rehman was involved in laundering approximately Rs1.6 to Rs1.7 billion through unlawful money transfer methods, including the notorious hawala and hundi systems. These informal channels, often used to bypass official banking regulations, facilitated the illegal movement of funds abroad. Alongside the prison sentence, Judge Nasr Minallah ordered the confiscation of assets believed to have been acquired through these illicit transactions and imposed a hefty fine of Rs25 million on the convicted executive.
This case traces back to investigations initiated by the Federal Investigation Agency (FIA), which uncovered that since 2007, funds connected to Bahria Town had been systematically transferred overseas via these underground networks. Such activities not only violate Pakistan’s financial laws but also pose a threat to the integrity of the country’s economic system. The case was formally registered in August 2025 under sections 3 and 4 of the Anti-Money Laundering Act, reflecting the seriousness with which authorities are treating these offenses.
Despite facing procedural delays, the trial progressed swiftly, concluding in under six months. The court examined extensive documentary evidence and heard testimonies from 12 witnesses, which collectively painted a clear picture of the money laundering scheme. The judgment underscored that the use of hawala and hundi for transferring illegal funds constitutes a grave financial crime, emphasizing the state’s commitment to stringent enforcement against such violations.
Meanwhile, other key figures implicated in the case, including Bahria Town’s founder Malik Riaz, his son Ali Riaz, and associate Shahid Qureshi, have been declared proclaimed offenders by the court. Their whereabouts remain unknown as the legal process continues to unfold. This landmark verdict sends a strong message to Pakistan’s real estate sector and beyond, signaling zero tolerance for financial misconduct and reinforcing the government’s resolve to uphold transparency and accountability.
