ISLAMABAD: The Capital Development Authority (CDA) is planning to increase water and sewerage charges, as the civic agency claims it provides water with an 80 per cent subsidy.

The CDA last revised water and sanitation charges in 2018, and after eight years, the civic agency now intends to revise the rates, Dawn has learnt.

Sources said the CDA Board had approved an increase in rates in principle last year, after which a public hearing was also conducted. Now, they added, the CDA wants to enhance the charges in light of the public hearing.

CDA officials said water was heavily subsidised and only around 20 per cent of its expenditure was being recovered through water charges. They said all other Water and Sanitation Agencies (Wasa) in the country provide water and sewerage services with around 80 per cent cost recovery, while Islamabad has a huge gap between recovery and expenditure.

A couple of years ago, the Metropolitan Corporation Islamabad (MCI), when it was responsible for water-related functions, attempted to increase the rates, but a court suspended the orders as the MCI had tried to enhance charges without a functional local government system. Later, the water directorate was placed back under the administrative control of the CDA.

Civic agency also plans to raise sewerage charges; claims current rates recover only 20pc of actual cost

Sources said the CDA wanted to refer the matter of rate enhancement to the federal government for approval. “This is true. Work is being done to enhance water and sanitation charges. The CDA is likely to refer the matter to the federal cabinet in this regard,” an officer said, claiming that the existing water charges were “nominal”.

He said that for 1,000 gallons per month, the existing rate was Rs16, while government-owned houses of categories A, B and C were required to pay Rs96 per month, whereas owners of D-type houses were paying Rs124 per month.

The officer said owners of private houses measuring up to 250 square yards were paying Rs228 per month, while those living in houses ranging from 500 to 999 square yards were paying Rs280 per month.

He said that under the proposed revision, water connection charges would also be increased. It is relevant to note that Islamabad is a water-scarce city, as no new water source has been added to the system during the last three decades.

During this period, the city’s population increased manifold, putting severe pressure on existing water sources and resulting in shortages, particularly during summer. The CDA has a total water supply capacity of 70 million gallons daily (MGD) against the capital’s requirement of over 220 MGD.

The CDA supplies water to urban areas, while rural areas of Islamabad mostly depend on small water supply schemes or bore water. However, the water table in Islamabad is also rapidly depleting, and in many areas, bore water is almost unavailable, including Ghouri Town and Sector H-13, where residents depend on private tankers.

The CDA has three main sources of water, including Simly Dam, Khanpur Dam and tube wells.

Meanwhile, during the last three decades, the CDA spent billions of rupees on roads and other development projects, but no significant focus was given to resolving the water issue. Proposals for constructing new dams and bringing water from the Ghazi Brotha Scheme have been under discussion for the last two decades, but no serious practical steps have been taken to begin these projects.

When contacted, another official said a proposal for increasing water and sewerage charges was under consideration. Asked about the CDA’s failure to explore new water sources, officials claimed that the civic agency was planning to construct two new dams besides focusing on the Ghazi Brotha Scheme.

“Serious efforts are underway in this regard,” he claimed.

Published in Dawn, July 17th, 2026