Karachi is known as one of the largest and fastest growing cities of Pakistan having unconfirmed record of population of about 22 million with GDP of 15 percent, from which 25 percent of revenues are generated and 62 percent is cut down in income taxes. (Twen ty-one, 2016; Hasan, 2015). In past few years, many residential and commercial projects have been completed in Karachi, in order to facilitate the population of all income groups. This research aims to explore the challenges faced by the local communities by the development of most dominating agency “The Bahria Town” Karachi. This study also analyzes the impacts of those challenges on the lives of local communities and their daily activities, demographics, and ethnicity. The methodology of this research is based on secondary data including case studies, books, newspaper, magazines, and articles. The primary data is being collected with the help of interviews with the local communities mainly. After exploring all the facts and figures, through literature review and primary data, this research concluded that Bahria Town being the biggest real estate agency has been failed to full fill the requirements of local communities in the nearby surrounded villages, additionally, became the reason of displacing many villages and also has negatively affected the agriculture and natural ecosystems.

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