ISLAMABAD: The Capital Development Authority (CDA) has, in principle, decided to withdraw the offer letter of 140 acres previously issued in favour of Special Technology Zone Authority (STZA) for setting up the Islamabad Technopolis near Chak Shahzad.

The civic agency will now develop and auction the area on its own.

During a meeting held at CDA headquarters, both sides agreed that the land will remain a property of CDA and STZA will act as a facilitator and licensing authority. The land will be developed and auctioned by CDA.

Some years ago, the CDA after approval from the federal cabinet had earmarked the land for STZA. Subsequently, it issued an offer letter to STZA for depositing the cost of the land. However, STZA did not deposit the amount.

Civic agency says it will now develop and auction area on its own

The decision was made in a meeting chaired by CDA Chairman Mohammad Ali Randhawa and attended by CDA board members and officers from STZA.

It is relevant to note here that the area falls in Zone III of Islamabad, where according to CDA regulations construction activities can’t take place. CDA had also barred locals from constructing even small houses on their own land in this zone. Resultantly, unauthorised construction has been taking place, as the CDA is neither acquiring the zone nor formulating regulations to regulate construction there.

However, CDA officials said the federal cabinet some years ago had already approved setting up the Technopolis in the said area. “Since cabinet had okayed setting up Technopolis in this area, legally there is on bar now,” said an official.

Asked about the locals who are running from pillar to post for construction of houses on their own inherited land, the official said: “I have already said that for said project CDA had approval of federal cabinet and as far as construction of houses in zone III is concerned, if cabinet allows we will have no issue,” he said.

“We have decided to take back our land, which we had offered to STZA. Now we will develop the area and will auction plots. STZA will act as a licensing authority for companies who will set up their business,” he said. He said CDA will prepare a new layout plan of the area.

According to a working paper, “Islamabad Technopolis will act as a catalyst for enhancing technology experts of Pakistan and it is expected to attract Foreign Direct Investment and job opportunities in the technology sector”.

This facility will be the first choice in the region “for global tech companies and expatriates due to its state-of-the-art technology-supportive infrastructure and lucrative tax incentives”.

STZA was formed to provide legislative and institutional support for development of the national technology sector. It is supposed to work towards developing a technology-driven knowledge ecosystem and encourage modern innovative solutions and futuristic entrepreneurship.

Published in Dawn, October 15th, 2025