ISLAMABAD: The Capital Development Authority (CDA) has moved a summary to the interior ministry for onward submission before the federal cabinet to decide the issue of the reduction of commercial charges for hotel and motel projects.

Sources said last week, the CDA moved a summary to the federal cabinet for reduction in land use conversion/commercial charges for hotels and motels operating in Islamabad.

According to sources, CDA in June this year revised rates for commercial projects, including hotels and motels, after eight years. The last time rates were revised was in 2017. However, there was unrest among the people involved in the hospitality business, who termed the charges too high.

Subsequently, they took up the matter with the Prime Minister’s Office, and recently, the PM referred their complaints back to CDA. On October 21, CDA board took this issue titled: “PM directive regarding grievances on Floor Area Ratio (FAR).”

Sources further revealed that CDA board, after discussing the issue at length, did not oppose reduction, and the board decided that the matter should be placed before the federal government for reduction in rates, as hotels/motels should be treated differently than other commercial projects.

Thereafter, the CDA board sent a summary to the federal cabinet in this regard.

Published in Dawn, December 1st, 2025