Bahria Town Founder Faces Money Laundering Probe

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Pakistan’s Information Minister Attaullah Tarar has announced the discovery of major money laundering evidence tied to Bahria Town, one of the country’s largest real estate firms, and its founder, Malik Riaz Hussain. The Federal Investigation Agency (FIA) recovered documents suggesting illegal fund transfers amounting to billions of rupees.

Speaking on Wednesday, Tarar revealed that the FIA conducted a raid at the Begum Akhter Rukhsana Memorial Trust Safari Hospital on Tuesday. The raid, according to the minister, uncovered documentation showing Rs1.12 billion ($3.9 million) was funneled out of Pakistan using illegal channels such as hundi and hawala networks.

“Bahria Town was using the hospital as a front to conceal cash and sensitive documents,” Tarar said. He added that employees tried to destroy records during the raid, but most evidence was secured. The operation also exposed that the hospital’s ambulance was allegedly used to transport money and documents.

Authorities have taken several individuals into custody. A man identified as Khalil, who reportedly managed Bahria Town operations, is being held. Two others, Imran and Qaiser, are accused of operating the illegal transfer networks. The FIA has reportedly located others who are on the run.

The minister stressed that the investigation targets Malik Riaz, his family members, and key Bahria Town officials, not residents. “This action is specifically against those involved in illegal activities,” he said, assuring residents their rights will remain protected.

So far, neither Bahria Town nor Malik Riaz has responded publicly to the new allegations. However, in a statement posted Tuesday on the social media platform X, Riaz said the crackdown on his business was politically motivated. He claimed that Bahria Town’s bank accounts had been frozen, vehicles confiscated, and dozens of employees detained, bringing operations close to a halt.

This latest development adds pressure to Riaz, who has been under scrutiny in the controversial Al-Qadir Trust case. That case centers on allegations that Riaz transferred land to former prime minister Imran Khan and his wife in exchange for favorable treatment regarding a £190 million settlement with the UK’s National Crime Agency (NCA) in 2019.

The NCA agreement involved the return of funds linked to Riaz’s overseas assets to Pakistan. Critics allege that instead of depositing the recovered money into Pakistan’s treasury, Khan’s government redirected it to settle Riaz’s legal issues at home.

In January 2025, Khan was sentenced to 14 years in prison in connection with the Al-Qadir Trust case. Both he and Riaz continue to deny any wrongdoing.

Earlier this year, NAB also issued a public warning against investing in Riaz’s proposed luxury real estate development in Dubai.