Malik Riaz Hussain

Malik Riaz is a Pakistani business tycoon and business magnate, he is the founder and chairman
of Bahria Town Pvt (Ltd). A distinguished entrepreneur, a philanthropist and a man of vision,
Malik Riaz Hussain believes that the future depends on social & economic equilibrium within
the society. His ideology according to himself is that of "Sultana Daku", who takes it from the
rich and gives it to the middle class in the form of affordable housing units and to the poor in the
form of charity and jobs.

He was born into a working-class Awan family. His father was also a contractor who went bank
corrupt thus contract work was simply not recommended in the family anymore. So Malik Riaz
started working as a clerk in Rawalpindi to make the meets end. But soon he realized that he
needs to stick to his family business.

In 1980 he became a contractor and started to take small contracts with very few resources
available. In 1995 Riaz's construction company Hussain Global signed an agreement with
Pakistan Navy's charitable trust known as Bahria Foundation to develop a gated community for
Pakistan Navy.

As an entrepreneur Malik Riaz has some brilliant qualities like bold and Confident, A "never,
never, never quit" Attitude, Always seeks Personal Satisfaction, Manages Money Wisely, Knows
his Customers, Highly adaptable, Expert at networking, highly patient.

The idea behind

The whole idea of a gated community like Bahria Town by Malik Riaz was based on the
provision of a quality lifestyle. The market back then in the 1990s had a backlog of housing units
which was ignored by the Government at that time. That was the time Malik Riaz bring his
product of gated community to the market with an installment plan to cater to the salaried
individuals as well.

The current statistics validate Malik Riaz's vision back then, as we can see that currently still
there is a huge demand and need for an affordable quality lifestyle. Pakistan has a housing
backlog of almost 10 million units (source: ABAD's Real Estate Research, 2016 and Lamudi's
White Paper 2017). People who earn up to Rs. 30,000 comprise a total population that of 68
percent for whom one percent of housing units are developed. On the other hand, almost 56
percent of housing units target 12 percent of the population, comprising individuals with a
monthly income of Rs. 100,000 and above. With demand growing up to 0.6 million new units
each year the shortage is estimated to be around 9 million units. But constructing 0.6 million new
unit building is a huge challenge to meet with a new demand. And if we add to it 0.5 million
units to clear the backlog in the next 20 years keeping in view a State Bank of Pakistan (SBP)-
estimated backlog of 10 million units, there is a need to build 1.1 million units per year. This
means fresh loaning of approximately Rs. 300 billion a year to meet only fresh demand (even if
we assume that an average housing unit is built at a cost of just Rs. 0.5 million). Thus at least
Rs.250 billion a year is needed to gradually clear up the backlog. By 2025, the shortfall is
predicted to swell to 20 million residential units.
What was their business?

Malik Riaz business is Bahria Town (Pvt) a privately own Islamabad based real estate
development company, which owns, develops and manages properties across Pakistan. Founded
in the late-1990s, it established its first gated community exclusively developed for the elites in
southern Islamabad and with some portions [Phase 8 and 9 (which also accommodate middle-
class income families) in Rawalpindi, on the Grand Trunk Road, which by mid-2000s had
expanded into nine phases divided into two compounds. Its second gated community opened in
Lahore, which is influenced by Greco-Roman culture and is built in Southern Lahore. In 2015, it
launched the Bahria Town Karachi, the largest of its gated communities, while Bahria Enclave
Islamabad (launched in 2013) is the smallest of them. Most of these communities are large towns
in their own right, its oldest community in Southern Islamabad spans over 16,000 hectares
(40,000 acres). The under-construction Bahria Town Karachi spans over 16,000 hectares (40,000
acres) and it is the largest privately-owned residential community in the country. Combined, its
projects can house over a million people.

Where did they get the idea?

According to one of his interviews, Malik Riaz said that during the early '90s when he released
that the attitude of the elite towards ace accommodation is a bit discriminatory, he decided to do
what something about it. Especially in the capital Islamabad, decent accommodation was out of
reach of a middle-class family. The elusiveness towards decent accommodation allowed only the
politicians, bureaucrats advocated and generals to have expansive bungalows in the main
Islamabad sectors. So the middle class and ordinary citizens were kept bay, this the main trigger
behind the whole idea of Bharia Town.

What hurdles did they face?

The flagship project of Malik Riaz, Bahria Town faced series of controversies since its inception.
In 1995 Riaz's construction company Hussain Global signed an agreement with Pakistan Navy's
charitable trust known as Bahria Foundation to develop a gated community for Pakistan Navy.
The Navy's Bahria Foundation served a legal notice to Riaz to stop using the word "Bahria" for
his company's construction projects, but Riaz went on to develop Bahria Town Rawalpindi
offering gifts of bungalows, and mansions to politically connected people and army generals as
per the allegations. Although the case is still undecided by the court and is under stay order.

Malik Riaz Hussain was approached by an intermediary of Arsalan Iftikhar Chaudhry, son of
Chief Justice Iftikhar Muhammad Chaudhry, that he had inside information and a case and it can
be resolved in his favor. Malik Riaz Hussain in an official deposition produced an itemized list
of how he bankrolled a playboy lifestyle for the son of the country's top judge. Arsalan Iftikhar
Chaudhry had allegedly promised to influence his father's rulings.

Malik Riaz Hussain, the Chairman of Bahria Town Pvt. Ltd., has been at the center of some
controversies and allegations. The allegations are mostly that he pays to get things done his way.
An excerpt from pakistanherald.com states that "National Accountability Bureau (NAB) is
currently looking into another application filed by a former military officer Lt-Col (retd) Tariq
Kamal, which states that the land on which Bahria town is constructed, and is further expanding,
was not acquired through legal means. It is alleged that Hussain has strong ties with Pakistan's
military which assisted him in building a huge empire. Some claims go as far as saying that a
handful of the important serving army officers, bureaucrats and lawyers are practically on
Hussain's payroll.

In April 2016, his son Ahmed Ali Riaz was named in the Panama Papers. In October 2019, the
parents of Amanda Halse, one of the 20 victims of the Schoharie limousine crash in the U.S.
state of New York a year earlier, named Riaz as a defendant in a wrongful death suit they filed
over the accident since they allege that he had helped finance the businesses of two distant
relatives who were principals in the company that owned and operated the limousine.

After 10 months of legal wrangling, the Supreme Court agreed to Bahria Town Karachi's final
settlement of Rs460 billion (approximately US$3.1bn) on 21 March 2019. Under the terms of the
settlement, Bahria Town Karachi will have to pay the entire amount over seven years. In its
ruling, the top court ordered Bahria Town Karachi to pay Rs25 billion by August 2019. From
September 2019 onward, it will have to pay monthly installments of Rs2.25bn for the next three
years. If the company fails to deposit two installments, Bahria Town Karachi will be considered
a defaulter. The first tranche was successfully received on 30 August 2019.

Under the terms of the settlement, only 16,896 acres of the total 24,571 acres have been
validated by the Supreme Court - the other 7,675 acres are still disputed.

Where their business stands at the moment?

Apart from gated towns, the company owns several shopping complexes including the Mall of
Lahore and the under-construction Mall of Islamabad, a chain of cinemas under the brand of
Cine Gold, a chain of supermarkets under the banner of Green Valley Hypermarket and
skyscrapers including the Bahria Icon Tower, which is the tallest in Pakistan. The group also is
the developer of Grand Jamia Mosque, Lahore, which is the seventh-largest in the world and is
constructing the Karachi. The under-construction Rafi Cricket Stadium, when completed, will
also be the largest in the country. On November 2016, Bahria entered into a contract with Hyatt
to develop four properties across Pakistan, including two golf resorts, worth combined $600
million. The properties would be owned by Bahria.

Bahria projects usually house upper-middle and high-income Pakistanis, these communities have
private security, the ability to restrict access to non-residents and are energy independent from
the national grid. Bahria gated communities are home to private schools including those operate
by the company, private hospitals, hotels, and commercial avenues. Bahria has been featured by
international news agencies ‘Global claimed that in 2013, Bahria houses some 100,000 people in
Zone V, Islamabad alone. Newsweek calls it as Pakistan's Gateway to Paradise. On October 6,
2011, the Los Angeles Times referred to Bahria as a 'functioning state within a non-functioning
one'. Bahria has been subject to controversies, it is referred to as a symbol of inequality, blamed
for illegal encroachment of forests and illegal alliance with the military.
Bahria Islamabad

The original project, the gated community has over 100,000 people and has a series of projects.
It is divided into various phases and smaller projects. Unlike other housing societies in Pakistan,
Bahria produces its electricity and sells it to its residents through the Bahria Town Electric
Supply Company. Bahria Town projects in Islamabad and Lahore were running respectively 12
and 9 megawatts of generation units of their own. Bahria Town also has constructed 3 grid
stations with its resources and also provides underground lines to its residents. Along with DHA;
it houses Top 1% of 200 million Pakistani Elite, thus there is no load shedding in Bahria Town
projects.

Bahria Enclave Islamabad

Bahria Enclave Islamabad is a housing scheme launched by Bahria Town in July 2011. It is
located approximately 8 km (15 minutes) drive from Chak Shahzad, the Park Road & the Kuri
Road with access from Kashmir Highway, Lehtrar Road & Islamabad Highway. On January 31,
2012, Capital Development Authority approved the plan for the development of Jinnah Avenue
in Zone-IV. The construction project of the four-lane road would link main Kuri Road to Kuri
Model Village and is awarded to Bahria Town.

Bahria Town Lahore

It is a flagship gated community in Lahore. The community is home to the Grand Jamia Mosque,
Lahore which is the seventh largest mosque in the world which has a total capacity of 70,000
people. Bahria Town Lahore includes sector A, B, C, D, E, F and Canal View Residency, Oasis,
Arham-e-Misr, Executive Lodges, overseas Enclave, Safari Villas, Umer Usman and Ali Blocks,
Bahria Orchids, Awami Villas, Bahria Nasheman, Pak Lane Tower, Bahria Homes.

Bahria Karachi

It is a privately-owned gated neighborhood under construction in Karachi, Sindh, Pakistan.

The development by the Bahria Town Group occupies under 46,000 acres (72 sq. mi; 19,000 ha),
just off the Super Highway. The community will include the Grand Jamia Mosque, which will be
the world's third-largest, and the Rafi Cricket Stadium, the country's largest, designed by
Architects. The community is divided by the 400-foot-wide (120 m), 18-lane, Jinnah Avenue.
The community will be energy independent with a coal-fired and an LNG-powered electricity
generation plant, in partnership with K-Electric.

Once completed, the community will house around one million people. It is also home to a 36-
hole United States Golf Association standard golf course. The town will be connected to I.I.
Chundrigar Road by a metro bus route. As of March 9, 2016, 104,000 residential units have been
sold to customers.
Bahria Golf City

Golf courses are usually appreciated for the diversity in terrain they can adapt to the golfing
fields. Bahria Golf City is rare, and un-rivaled in Pakistan, in this that even internationally one
does not find more than a few resorts converted golf courses.

Philanthropy

Following the devastating floods in Pakistan that took place in 2010, Malik Riaz pledged to give
away 75% of his wealth to the country. He urged fellow wealthy Pakistani to do the same and
even wrote letters to 100 of the richest individuals in Pakistan.

Because of his philanthropic initiatives, he is being dubbed as The Warren Buffett of Pakistan.

· Providing daily free meals, twice a day, to more than 35,000 people throughout Pakistan
under Bahria Town Dastarkhwan.
· Thousands benefit from free medical treatment ranging from dialysis to open-heart
surgery, bone marrow transplant to general treatments in 3 large Bahria Town Trust
hospitals.
· Mobile dispensaries providing free medicines in rural areas.
· Regular financial support to Al-Shifa Trust, Shaukat Khanum Memorial Trust, Sahara
Trust, SOS Village, and many more welfare organizations.
· Running centers for over 4,000 orphans with educational and lodging facilities.
· Conducted combined marriages of more than 4,500 couples.
· Providing microfinance loans to students at Rawalpindi Agricultural University.
· Running various schools, institutes, and colleges in different cities and villages with more
than 7,000 students.
· Always at the forefront in helping the nation in times of natural calamities & unfortunate
incidents such as the 2005 devastating earthquake, Margalla Tower & fire at the Marriott
Hotel and Ghakhar Plaza Rawalpindi Also led many relief teams for the aid of IDP's,
which provided financial, medical & food assistance.
· Medical Camp established at Swabi has served over 30,000 patients already.
· And are honored to contribute towards its economic and social development. We work
relentlessly towards the development of a modern and progressive Pakistan and are
thankful to our more than 200,000 members for their continued support and unparalleled
confidence in the leadership of Bahria Town.