On May 14 2025, CDA abruptly reversed the development charges it had imposed on sectors C-13, C-14, C-15, C-16, C-17, E-12, I-11, I-12, I-14, and I-15. Only a week ago on Monday 7 2025, CDA had imposed charges of Rs.9000 per square yard on the development of sectors C-13, C-14, C-15, C-16, C-17, E-12, I-11, I-12, I-14, I-15 in Islamabad. While the market took a sigh of relief, no one seems to be asking how will CDA develop these under-developed sectors without any funds?
Chain of events leading to the reversal of development charges
- Wednesday May 14, 2025: Director Land and Rehabilitation, Samina Pasha issued a new notification that withdrew imposition of development charges.
- Wednesday May 7, 2025: Director Land and Rehabilitation, Samina Pasha issued a notification imposing development charges of Rs.9000 per square yard on the under developed sectors of Islamabad including sectors C-13, C-14, C-15, C-16, C-17, E-12, I-11, I-12, I-14, I-15.
- Tuesday August 13, 2024: The CDA Board decided to apply development charges on sector E-12.
Why did CDA reverse the development charges on the under-developed sectors?
The CDA had acquired the land for sectors C-13, C-14, C-15, C-16, C-17, E-12, I-11, I-12, I-14, and I-15 on the Land Sharing Basis. The governing Land Acquisition and Rehabilitation Regulation 2007 stipulates under Section-3 that CDA is liable to provide developed plots against land acquired from the land owners or land affectees. For example, CDA is legally bound to give a 1 kanal developed plot to the affectees for every 4 kanals of land acquired.
Does CDA have the funds to deliver the under-developed sectors of Islamabad?
CDA had planned to generate development charges of Rs.1,125,000 on a 5 marla plot, Rs.1,800,000 on a 8 marla plot, Rs.2,250,000 on a 10 marla plot, and Rs.4,500,000 on a 1 kanal plot. This translates into billions of rupees in development charges. CDA does not have these funds to dedicate to the development of these under-developed sectors inlcuding C-13, C-14, C-15, C-16, C-17, E-12, I-11, I-12, I-14, and I-15.
CDA has delayed the development of under-developed sectors by decades
The sector E-12 was launched in the year 1989 with the promise to deliver the 4000 plots in a year’s time. Today after the passage of 36 years the sector E-12 remains undelivered. Similarly sectors C-13, C-15, and C-16 were acquired in 2008 and yet after passage of 17 years these sectors have not been developed and delivered to the allottees. A common excuse CDA has been giving was the insufficient funds. Does the reversal of development charges mean a renewal in excuse to further delay the delivery of these sectors?
What is the progress update across the under-developed sectors of Islamabad?
The development across multiple residential sectors of CDA Islamabad has been un-assuring. Earlier in the first half of 2024 the CDA had picked up the pace of development across sectors C-15 and C-16 but by September 2024 the development had abruptly stopped.
Currently the development of C-13 has not started. Sector C-14 has only completed 70% of the blade work for the roads layout. Sector C-15 has the blade work done for sub-sectors C-15/1, C-15/3, and C-14/4 while C-15/2 is yet untouched. Similarly, sector C-16 has done partial blade work for roads in sub-sectors C-16/3 and C-16/4 while C-16/1 and C-16/2 remain untouched. Sector C-17 remains entirely untouched.
The development work in sector E-12 remain quite haphazard and unpromising. Bladework for roads has been done in small patches across sub-sectors E-12/, E-12/2, and E-12/3 while E-12/4 remains untouched.
Sector I-11 is majorly a commercial sector with only sub-sector I-11/2 dedicated to residential plots. This sector is fully developed with almost 85% built-up area. Rest of the sub-sectors are dedicated for commercial use. Sub-sector I-11/1 is under use primarily by the Pakistan Railway Carriage Factory and an apartments complex of the PHA. Sub-sector I-11/3 has the I-11 Markaz and commercial-use plots. Whereas sub-sector I-11/4 has Metro Cash and Carry Hypermarket and the Sabzi Mandi (Fruit and Vegetable Market) for the Islamabad city.
Sector I-12 has bladework done for roads across all sub-sectors I-12/1, I-12/2, I-12/3, and I-12/4. Sector I-14 is fully developed and built-up. And sector I-15 has bladework completed for roads across all subsectors I-15/1, I-15/2, I-15/3, and I-15/4.
Conclusion
CDA with its failed attempt to impose development charges has proven that it does not have the funds to speedily develop the under-developed CDA sectors. The reversal of the charges is problematic because it shows that CDA is confused about how it plans to develop sectors C-13, C-14, C-15, C-16, C-17, E-12, and I-15. Further with the announcement of the CDA-DHA Joint Venture of DHA Margalla Enclave the focus seems to be shifting further away. We are hearing a lot from CDA about what it intends to do but with no actions to support the claims.
To get guidance on investing in CDA sectors C-13, C-14, C-15, C-16, C-17, E-12, I-11, I-12, I-14, I-15, in Islamabad please email us at info@gharmubarak.com
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