ISLAMABAD: After federal auditors revealed that the inordinate delay in the completion of the Nilor Heights Project was depriving the civic authority of the envisaged benefits amounting to Rs14 billion, the city managers have taken up the issue with the federal government for a solution.

In 2021, the CDA launched the multibillion project for the construction of apartments on its own land in Nilor. The project was required to be completed within 24 months - by June 30, 2023.

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 the stoppage of the project halfway last year when the grey structure of 60 blocks had been completed.

Now, the civic agency wants to exclude NPHDA from the project and invest its own funds. Sources said recently the CDA moved a summary to the government, pleading that it should be allowed to execute the project on its own.

Move comes after auditors recently revealed delay in completion of Nilor Heights Project depriving civic authority of billions

“Since CDA had already spent billion of rupees on this project, we can’t leave it abandoned. We want to move forward. Therefore, we have requested the federal government for a solution,” CDA Chairman Mohammad Ali Randhawa told Dawn on Thursday.

To a query, he said: “I can’t share further information but yes our talks are in progress with federal government in this regard.”

Sources said if the government gave the go-ahead, the CDA can either complete the project to sell out apartments or auction the entire project as it is. “But, nothing is final yet,” said an official source.

It is relevant to note here that the audit report, released in August this year, raised objections on the project.

“Audit is of the view that had the authority completed the said project within implementation period of approved PC-I, then the authority would have been able to get the benefit/revenue of Rs14.000 billion, as envisaged in PC-I,” read the report 2024-25 released by the Auditor General of Pakistan.

The audit report said: “Moreover, financial obligations were not fulfilled by NAPHDA which resulted in envisaged benefits being delayed. The matter was discussed in DAC meeting held on 26.12.2024. DAC directed Fact Finding Inquiry at the level of Ministry of Interior and Cabinet Division. Compliance of DAC directives was not made. Audit recommends compliance of DAC directive.”

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 Nilor Height Project later.

The 2,400 apartments were originally meant for 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 in the 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 from 6,000 applications. 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 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 over one year.

Published in Dawn, October 4th, 2025