ISLAMABAD: The four-day auction of the Capital Development Authority (CDA) concluded on Friday with the civic authority failing to meet its target.

The CDA managed to generate Rs12.9 billion against its target of Rs20 billion. It was able to auction nine commercial, two residential and 14 half marla (150 square feet each) plots for fruit, vegetable and meat shops. These small plots turned out to be hot cake for investors.

On the last day of the auction, the CDA sold two plots meant for shops measuring 150 sq feet each in F-8/4 for Rs43 million and Rs45 million, respectively. Similarly, three plots in G-11/4 sector were auctioned for Rs19 million and Rs20 million and two residential plots in F-10/2 (555 sq yards each) against Rs133 million and Rs255 million, respectively. One commercial plot in Blue Area measuring 611 square yards was auctioned against Rs1.03 billion.

Earlier, in January this year, the CDA fetched a whopping Rs41 billion against auction of 42 plots whereas in August, another mega auction was held under which the civic agency sold 42 plots against Rs40.9 billion. In the auction held in July this year, the civic agency fetched Rs3.8 billion from the sale of plots on Capital Street.

Sources said the civic agency was expecting Rs20 billion from the four-day auction but it auctioned plots worth Rs12.9 billion.

An official of the CDA, however, stated that overall response of investors remained satisfactory. He said earlier, the civic agency intended to present two mega hotel plots worth billions of rupees in this auction, but they were dropped because of technical reasons.

He said in the coming months, the CDA would present the said five-star hotel plot for auction which it expected to earn huge revenue from.

Being an autonomous body, the CDA relies on its own funding for meeting development and non-development expenditure. It has around 15,000 employees with thousands of pension cases and every month it has to pay millions of rupees in term of utility services.

Published in Dawn, October 21st, 2023