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WASHINGTON: Pakistan finally sold a historic building vacant since 2003 in the United States capital for $7.1 million.
The property has been purchased by Pakistani businessman Hafeez Khan. The Pakistan-embassy owned building has been vacant ever since the embassy was shifted. Its diplomatic status was also revoked in 2018, making it liable to pay taxes to the local government.
The authorities in District of Columbia downgraded the property classification of the building, increasing taxes on its assessed value as well. The building was up for sale for the past few months.
The local authorities had changed the class status of this old and crumbling building owned by the Pakistani government.
The famous R Street building, which used to be a chancery in the past, was put up for auction late last year, after which the government received three bids. However, the bidding process was later cancelled without any reason. The highest bidder had offered $6.8 million for the property. The re-auction evaluation of the building was set for $4.5 million.
The local authorities had further downgraded the property status earlier this year. The Pakistani government did not get any tax relief on that property from 2018 onwards.
In April 2023, the building’s property classification was further downgraded, and it has now been designated Class 4 (Blighted property) for its deteriorated condition.
The building deteriorated even though then-prime minister Yousaf Raza Gillani approved the repairs through a $7 million loan in 2010.
