ISLAMABAD: The capital’s business community declared on Tuesday that outdated laws and alleged corruption in the Capital Development Authority (CDA) were hampering development and discouraging investment.

Leader of the business community Dr Shahid Rashid Butt said old and irrelevant laws were increasing the cost of doing business in the capital.

“Those who buy commercial land worth millions of rupees have to complete formalities such as soil testing but these should rather be done by the CDA before selling the land,” said Dr Butt, the founding president of Islamabad Chamber of Commerce and Industry and current chairman, Chamber of Small Traders.

During a meeting of the Chamber of Small Traders, participants noted that the civic body takes years to approve maps, designs and building plans.

The businessmen said that the maps are drawn by professional engineers and architects approved by the Pakistan Engineering Council and the civic agency itself but it takes a long time to have them approved.

“The whole system of the Building Control Cell of the CDA is in the hands of lower grade employees who purposely cause delays to receive bribes. This causes discouragement and increases the cost of doing business,” said Dr Butt.

Traders call for changes in old, irrelevant laws

He said investors who are late in their payments are charged 18 per cent extra but there is no penalty for the CDA when it causes delays. Slow processing results in large amounts of money being blocked in a single project for years.

Meanwhile, Chamber of Small Traders President Kamran Abbasi called for prompt action by the CDA against commercial activities in residential areas of Islamabad.

“This would reduce the high demand in residential areas, bring down rates and boost taxes,” Mr Abbasi said.

He added that shifting all business activities to commercial areas would also enhance employment as more plazas are constructed in markets.

The meeting was attended by G-9 Traders President Raj Abbasi, Aabpara Market President Malik Zaheer Ahmed, Medoly Market Chairman Masood Khokhar and others.

Published in Dawn February 18th , 2015

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