Islamabad: The financial disciplinary measures introduced by the present administration of the Capital Development Authority (CDA) has succeeded in helping the latter achieve its sought financial stability — with CDA Chairman Amer Ali Ahmed recently approving the first instalment of PKR 350 million for the repayment of loans to the federal government, according to a news source published on September 8.
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A CDA spokesperson revealed that the repayment will be made by utilizing the authority’s own budget for the (fiscal year) FY2020-21. He added that this loan instalment is payment for the Cash Development Loan that was granted to the authority (at a 7% fixed interest rate) in June 2016, worth PKR 5 billion.
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Reportedly, the said Cash Development Loan is recoverable in 20 years with interest, after the expiration of a 5-year grace period for the recovery of the principal amount. During this 5-year grace period, only the interest amount has to be paid — with the principal amount expected to be paid with interest after the expiration of the grace period in 2020-21.
Presently, the CDA is on a path of achieving financial stability — with this development having resulted in the aforementioned decision to repay the PKR 350 million loan to the government.