Islamabad: The Capital Development Authority (CDA) has moved a summary to the Interior Ministry for onward submission to the federal cabinet, seeking a decision on reducing commercial charges for hotel and motel projects in the capital.
Sources said the proposal follows concerns raised by the hospitality sector after the CDA revised rates for commercial projects, including hotels and motels, in June this year for the first time in eight years. The previous revision had taken place in 2017. Industry representatives had expressed dissatisfaction with the new rates, describing them as too high, and subsequently approached the Prime Minister’s Office (PMO) for intervention.
The PMO referred the matter back to the CDA, which discussed it at length in its board meeting on October 21 under the agenda titled: “PM directive regarding grievances on Floor Area Ratio (FAR).”
Officials said the CDA board did not oppose a reduction in rates and recommended that hotels and motels be treated differently from other commercial projects. Following this decision, the summary was forwarded to the federal cabinet for final approval.
The federal cabinet is expected to review the proposal and determine whether the commercial land conversion charges for hotels and motels in Islamabad will be adjusted, potentially easing costs for the city’s hospitality sector.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
