ISLAMABAD: The Capital Development Authority (CDA) has forwarded 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 Islamabad.
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Sources said the move comes after last week’s cabinet submission, highlighting demands from the hospitality sector for a decrease in land use conversion and commercial charges. The issue gained attention after complaints were raised with the Prime Minister’s Office (PMO).
According to officials, the CDA revised rates for commercial projects, including hotels and motels, in June this year — the first revision since 2017. However, stakeholders in the hospitality industry criticized the new rates, describing them as excessively high.
The PM reportedly referred the grievances back to the CDA, prompting the board to review the matter under the agenda titled: “PM directive regarding grievances on Floor Area Ratio (FAR)” on October 21. After extensive discussion, the CDA board decided that hotels and motels should be treated differently from other commercial projects.
The board did not oppose a reduction in charges and concluded that the final decision should rest with the federal government. Following this, the CDA prepared a formal summary for submission to the federal cabinet, seeking approval for reduced commercial charges for hotel and motel projects.
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The move is expected to ease the financial burden on the hospitality sector, encourage investment, and promote tourism in Islamabad. Officials said the federal cabinet’s decision will set a precedent for handling charges for commercial projects in the city in the future.