ISLAMABAD: The Capital Development Authority (CDA) is facing a catch-22 situation as it has invested billions of rupees in the Nilore Height project while a way forward for the project is yet to be decided by the government.

The CDA in 2021 started the multi-billion project for construction of apartments on its own land in Nilore. The apartments were supposed to be procured by its partner - Naya Pakistan Housing and Development Authority (NPHDA) - for its members.

However, sources said CDA did not receive any kind of financial help from NPHDA. That resulted in stoppage of the project halfway last year when the grey structure of 60 blocks had been completed.

Now the CDA is planning to take up the case with the federal government to get approval and execute the project and sell the apartments in the open market.

Apartments were supposed to be procured by NPHDA, but work halted halfway last year due to unavailability of funds, says official

“We have invested billions of rupees in this project, but due to shortage of fund the project was stopped last year. If NPHDA wants to procure apartments for its members, they will have to pay to the CDA otherwise we will request the government to allow us to end the role of NPHDA so that we could complete the project after selling apartments in the open market,” said an official of the CDA.

He said the CDA board in 2023 had also decided to take up the case with the federal government. “Last year, we had moved a summary for the government, which was returned with some objections. Now we have decided to resubmit it,” the official said.

Under the project worth Rs31 billion, the CDA has been building over 4,000 apartments.

The project had two phases. Under the first phase, 2,400 small apartments (each measuring 779 square feet) had been built and only finishing work on them was pending. Under this phase, CDA constructed 2,400 apartments in 60 blocks of ground-plus-four storeys.

The project was initially named ‘Farash Town’ apartment scheme in 2021. The name was, however, changed to Nilore Height Project later on.

The 2,400 apartments were originally meant for lower strata of society and the CDA had decided that these housing units will be allotted to low income groups. As per its original plan, the CDA was supposed to hand over 2,000 apartments to NPHDA for further allotments and 400 apartments were meant for allotment to slum dwellers living in city areas.

The second phase (whose foundation work was in progress before the project was halted last year) was meant for commercial auction and the CDA would construct state-of-the-art 1,876 apartments of various sizes up to 1441 square feet. A couple of years ago, the CDA had decided to auction 2,000 apartments to overseas Pakistanis at a price of $30,000 per apartment.

The CDA floated an advertisement and received an overwhelming response form 6,000 applications from overseas Pakistanis. The balloting was supposed to be held in May 2023 but could not be held due to litigation.

Earlier, NPHDA also held a balloting to allot the under-construction apartments to people with low income. When these people came to know that the CDA was now going to sell the apartments to overseas Pakistanis, they filed court cases and the balloting could not be held. The project is stalled for the last one year and so.

When contacted, CDA Chairman Mohammad Ali Randhawa said a viable solution would be proposed to resolve the issue. To a query, he said: “We will ensure completion of the project as billions of rupees have already spent on it.”

Published in Dawn, April 22nd, 2025