CDA pays the cost of sit-ins

The Capital Development Authority (CDA) is incurring massive costs because of the ongoing sit-ins in the Federal Capital. A major avenue for revenue generation for the authority is auction of land, however it has been postposing the auction of land because of these political demonstrations. This means that the influx of approximately Rs 35.73 billion has been delayed.

According to a news source, the auction of residential and commercial plots was scheduled to be held on August 23 and 24, but because of the political demonstrations the plan could not go ahead. The auction has already been shelved four times over the last three months, most recently on October 13-15. The civic authority is already facing financial problems, and it has not been able to undertake development work in Sectors I-15 and D-12 for this reason. Not only that, many other projects have been put on the back burner because of the financial crunch that the CDA is passing through.

The authority is of the view that the real estate sector has been damaged by the political instability and the value of properties has plummeted significantly, which can also put negative impact on the auction process. The authority has now deferred the auction plan for an indefinite period until the real estate market becomes normal again.

The news source reported further that the CDA had planned to action 18 commercial and 50 residential plots, along with two agricultural farms. In the annual budget, the authority had put forward some development projects worth Rs 45.82 billion. These project included development of car parking areas, construction of two underpasses in Sectors G-7/G8 and Sectors F-7/F-8, development of a slaughterhouse, and construction of semi-covered markets in the capital. The authority had also invited tenders for the stated projects, but it is now short of funds to execute these projects.

It is no secret that the Federal Capital’s real estate market has suffered because of the sit-ins, and this is another concrete example. Please use the comments section below to shed some light on the matter discussed in this post if you can.