ISLAMABAD: Unlike the opening day when the Capital Development Authority (CDA) earned Rs13.52 billion, the last two days of the auction, which concluded on Wednesday, brought in just over Rs3.5 billion.

The CDA, established in 1960, still relies on its land bank for development projects and non-development expenses, including salaries and pensions. Apart from property taxes and transfer fees, the authority has no significant regular income to run its operations.

During the three-day auction, the CDA put around 80 residential and commercial plots up for sale, of which 16 were sold, providing a financial boost to the agency. The CDA plans to use the revenue for several new development projects, including the Kashmir Chowk underpass and the construction and overhaul of Islamabad Expressway service roads.

CDA spokesperson Shahid Kiani said the agency was satisfied with the auction results. “We earned over Rs17 billion in this three-day auction, which is a good result and aligns with our expectations,” he said.

Civic body plans new development projects, pursuing initiatives to generate regular income

Asked how long the CDA would continue relying on its land bank, he said selling plots is a necessary part of the agency’s work, as it is responsible for providing land for commercial and residential use. “Plot auctions are important for the growth of the city,” he added.

On the question of permanent sources of revenue, he said: “I have no idea about the past, but this management has already initiated several steps. We got our Joint Venture rules approved, launched the Margalla Enclave Housing Project through our partners under JV and are now in the process of constructing a five-/seven-star hotel. These initiatives will help generate regular income in the future.”

He added that the Blue Area parking plaza has been completed and several sports facilities developed with private partners are now generating significant rental income.

Mr Kiani also said after a 20-year gap, CDA had completed Sector I-15, with completion of a few other sectors at an advanced stage.

Meanwhile, a CDA press release stated that “in the three-day auction, plots of various categories were sold for over Rs17 billion. On the final day, Plot No 514 in Sector G-10/2 was sold for Rs93.33 million, Plot No 516 for Rs92.62 million, and Plot No 517 for over Rs100 million. Plot No 526 fetched Rs93.33 million, Plot No 531 Rs94.04 million and Plots No 547, 548 and 556 each sold for Rs91.90 million. In addition, Plot No 9 in the Orchard Scheme on Murree Road was auctioned for Rs712 million, while Plot No A-9 in the same scheme fetched Rs732 million. Overall, 10 plots were sold for Rs2.193 billion on the final day.”

According to the release, CDA Chairman Mohammad Ali Randhawa reviewed the auction proceedings on the last day. He said the active participation of investors reflected their confidence and trust in the civic body’s policies. He also appreciated all investors who participated.

Mr Randhawa said the revenue generated from the auction would be used to provide facilities to all citizens, including investors.

“Investors and the CDA are working as partners in the city’s development and progress,” he said. The auction process was supervised by an auction committee headed by Member Finance, Tahir Naeem.

Published in Dawn, December 25th, 2025